Solvay reports 83 percent drop in net profits

20th February 2009, Comments 0 comments

Belgian chemical and pharmaceutical group posted a massive 83 percent drop in fourth-quarter profits.

BRUSSELS - Belgian chemical and pharmaceutical group Solvay on Thursday posted a massive 83 percent drop in fourth-quarter profits to 29 million euros (36.5 million dollars) with 2008 profits slashed by almost half.

The total net profits for last year were put at 405 million euros, a drop of 48 percent, with 2009 fraught with uncertainties, the company said in its annual results.

Sales contracted by one percent to 9.49 billion euros last year and by four percent to 2.27 billion euros in the fourth quarter.

The group said the results were due to a fall in demand for its plastics and chemicals, though its pharmaceuticals sector performed well

"The macro-economic and financial uncertainties limit the visibility in 2009. Market conditions remain difficult at the beginning of the year," the company said in a statement.

"The competitive positions of the group, its diversification, the measures taken to support the profitability and maintain its healthy financial standing will help to cope," it added.

AFP/Expatica

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