Solvay reports profit slump, outlook disappoints

31st July 2013, Comments 0 comments

Belgian chemicals group Solvay said on Wednesday its second-quarter net profit tumbled 38 percent, and concerns over the outlook hit the share price.

Solvay said its three months to June net profit of 148 million euros ($190 million) came in a "difficult" environment.

Analysts surveyed by Dow Jones Newswires had expected a net profit of 114 million euros.

The company said it was confident it could report a 2013 operating profit in line with last year, after adjustments for exceptional items, but analysts said that would imply a slight downgrade of current forecasts and the news hit the shares.

In early trading on the Belgian stock market, Solvay shares were down 2.5 percent.

Second-quarter operating profit, which measures the broad performance of a company, was down 14 percent at 487 million euros but this was still ahead of analyst forecasts for 475 million euros.

Sales in the period fell 4.0 percent at 3.1 billion euros.

Solvay said it continued to press ahead with its restructuring programme to boost its competitive position.

© 2013 AFP

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