Solvay Profits Down 8% In Fourth Quarter 2006

Belgian-based Solvay has reported an 8% year-on-year decrease in recurring operating profit for the 4Q 2006 (REBIT) to £216M. This is despite the chemicals sector posting an increase of 15% at £60M. Group sales for the quarter were 1% higher than the same period the previous year, at £2.3BN. Chemicals sales were up 5% at £743M. 4Q results increased, especially in Europe, thanks to a favourable development in volumes, a gradual increase in prices in order to compensate for the increased cost of ethylene and the savings linked to the Ludwigshafen, Germany, shutdown, Solvay said. The growth of specialty derivatives of soda ash, especially bicarbonate, continued due to an improved portfolio & geographical expansion.