Brief: Solvay Announces Non-Cash Impairment Estimated Around 1.5 Billion Euros

Solvac SA

24/06/2020 06:46

June 24 (Reuters) - Solvac SA  SOAC.BR :
    * GIVEN DETERIORATION IN SHORT AND MID TERM ECONOMIC
PERFORMANCE
DUE TO COVID-19, IMPAIRMENT REVIEW IS UNDERWAY AND LIKELY TO
LEAD TO A NON-CASH IMPAIRMENT ESTIMATED AROUND €1.5BN
    * GROUP SALES WERE DOWN 20% IN AGGREGATE ACROSS APRIL AND
MAY
VERSUS 2019 LEVELS, REFLECTING RESILIENCE OF SOLVAY'S
DIVERSIFIED PORTFOLIO
    * DECISIVE ACTIONS ON STRUCTURAL AND TEMPORARY COST
REDUCTION
PROGRAMS AND FOCUS ON CASH GENERATION HELP TO EASE SOME OF
EFFECTS AND POSITION GROUP FOR STRONG GROWTH WHEN MARKETS
REBOUND
    * BUSINESSES RELATED TO OIL AND GAS, AUTOMOTIVE, AND
AEROSPACE
WERE MOST SIGNIFICANTLY IMPACTED, WITH REVENUES DOWN ABOUT 40%,
WHEREAS BUSINESSES RELATED TO CONSTRUCTION AND MINING WERE DOWN
ABOUT 20%
    * OTHER KEY MARKETS SUCH AS HEALTHCARE, AGRO/FOOD, HOME &
PERSONAL
CARE AND ELECTRONICS RESISTED WELL AND HELPED TO OFFSET SOME OF
CHALLENGED MARKETS
    * FUNDAMENTAL LONG-TERM ATTRACTIVENESS OF COMPOSITE
MATERIALS AND
TECHNOLOGY SOLUTIONS BUSINESSES REMAIN UNAFFECTED

Source text for Eikon:  ID:nGNE3RSpPc 
Further company coverage:  SOAC.BR 

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