Solvay Says Trading Conditions Much Better in Q1

Chemicals and plastics firm Solvay said trading picked up over the first quarter and forecast profits should rise by half in four years as it focuses on better performing divisions and makes bolt-on acquisitions.

Trading conditions were significantly better in the first quarter than the fourth quarter of last year, it said in a statement released before an investor day in London.

Solvay, which reports its first-quarter results on May 7, said at the time of its full-year results in February that overall market conditions seemed to be progressively recovering.

The company, which bought France's Rhodia last year, added it would look for chances to expand in its specialised polymers plastics division, its consumer chemicals unit and advanced materials operations, but would examine the positioning of its vinyls division, polyamides and specialty chemicals units.

"The execution of our strategy will be mainly driven by operational excellence and growth based on innovation, capacity expansion in fast-growing regions and value adding bolt-on acquisitions," said Jean-Pierre Clamadieu, chief executive designate.

The company forecasts that the changes should lead to a recurring core profit (EBITDA) of €3 billion ($3.9 billion) in 2016, compared with 2.1 billion for 2011.

Clamadieu is due to take over on May 11.