Solvay announces “excellent” first quarter

Solvay has described its first quarter as “excellent”, despite recording a 27 per cent drop in net income compared to the same quarter in 2005. The company highlighted strong growth in its pharmaceuticals business, with group sales up by 20 per cent to 2.357 billion euros (1.61 billion pounds). Sales in its pharmaceuticals sector grew by 56 per cent, with sales in fenofibrate in its cardiometabolic area described by the company as “remarkable”.

The company blamed the reduction in net income as being down to a series of one-off expenditures, amounting to 88 million euros, as well restructuring costs in implementing objectives for the European INSPIRE project, a change management and business process re-engineering scheme to completed by 2010.

A Solvay statement said: “The three sectors in the Group have had a very good start in 2006. Overall for 2006, the Solvay group should record higher sales and operating results, taking into account the current macroeconomic conditions.”

Alois Michielsen, chairman of Solvay’s executive told shareholders that the company’s good results were soured somewhat by the “very heavy” punishments handed out by the US and the EU – 36 million euros and 193 million euros respectively – for anti-competitive practices relating to peroxides in the late nineties.

He said “Such practices are unacceptable. We can only repeat and reaffirm that we are giving the matter our full attention at the highest level of the company and are doing everything possible to ensure that Solvay respects all competition legislation.”

The Belgian company concluded by saying that it wishes to strengthen its presence in Asia, Eastern Europe and the Americas. Solvay’s UK-based healthcare division is based in Southampton, where it employs 160 people. In 2004 generated sales of 50 million pounds.

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