By Ed Frankl

 

Solvay SA on Wednesday raised its full-year earnings outlook after first-quarter profit and sales beat expectations as prices kept up with inflationary costs.

The Belgian chemicals company said net profit in the three months to the end of March rose to 369 million euros ($388.2 million) from EUR240 million in the same period last year.

Sales rose 29% to EUR3.06 billion, a new quarterly record, driven by prices that were 20% higher and volumes that rose by 6%.

That compares with expectations of EUR258 million for net profit and EUR2.76 billion for sales, according to analysts' estimates provided by the company.

Price gains in the quarter more than offset EUR369 million of inflationary cost increases, Solvay said.

The Brussels-based company raised its 2022 expectations for underlying earnings before interest, taxes, depreciation and amortization, now estimating it to grow by mid-to-high single digits. Previously Solvay expected Ebitda to grow by mid-single digits

It kept its full-year outlook for free cash flow to exceed EUR650 million.

 

Write to Ed Frankl at edward.frankl@dowjones.com

 

(END) Dow Jones Newswires

May 04, 2022 01:20 ET (05:20 GMT)

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