Brief: Solvay Sees 2020 Underlying EBITDA Growth Between 0% And -3%

Solvac SA

26/02/2020 06:57

Feb 26 (Reuters) - Solvac SA  SOAC.BR :
    * SOLVAY 2019 4TH QUARTER & FULL YEARS RESULTS
    * STABLE TOTAL DIVIDEND RECOMMENDED OF EUR 3.75 GROSS PER
SHARE
    * FINAL GROSS DIVIDEND OF EUR 2.25 PAYABLE ON MAY 20, 2020
    * 2020 FREE CASH FLOW CONVERSION OF 28% AND ROCE TO BE
STABLE
AROUND 8%
    * UNDERLYING EPS FROM CONTINUING OPERATIONS (FY: EUR 8.02
-4.7%)
    * EXPECTS ORGANIC UNDERLYING EBITDA GROWTH BETWEEN 0% AND
-3% ON A
YEAR OVER YEAR BASIS IN 2020
    * FY NET SALES EUR 10.24 BILLION VERSUS EUR 10.33 BILLION
SEEN IN
COMPANY-COMPILED CONSENSUS
    * FY PROFIT ATTRIBUTABLE TO SHAREHOLDERS EUR 1.08 BILLION
VERSUS
EUR 1.10 BILLION SEEN IN COMPANY-COMPILED CONSENSUS
    * FY CAPEX FROM CONTINUING OPERATIONS INCREASED BY +5.4%
COMPARED
TO €794 MILLION IN 2018
    * DISRUPTIONS RELATED TO THE COVID-19 VIRUS ARE UNCERTAIN;
SOLVAY
EXPECTS APPROXIMATELY -€25 MILLION IMPACT IN THE FIRST QUARTER
AND WILL UPDATE ITS OUTLOOK AS THE SITUATION BECOMES CLEARE
    * OUTLOOK 2020: ROCE TO BE STABLE AROUND 8%
    * OUTLOOK : MACROECONOMIC ENVIRONMENT HEADWINDS ARE EXPECTED
TO
CONTINUE INTO 2020, WITH EXPECTED IMPROVEMENT IN KEY MARKETS
(AUTO AND ELECTRONICS) IN THE SECOND HALF
    * OUTLOOK : FREE CASH FLOW CONVERSION EXCEED 30% BY 2024
    * 2020-2024 OUTLOOK : UNDERLYING EBITDA GROWTH
MID-SINGLE-DIGIT
GROWTH PER YEAR AVERAGE
    * OUTLOOK: COST REDUCTIONS AT LEAST EUR 350 MILLION (ANNUAL
RUN-RATE BY 2024) WHICH INCLUDES THE ADDITIONAL MEASURES
ANNOUNCED TODAY
    * ASSUMES BOEING 737MAX PRODUCTION OF 200 AIRCRAFT IN 2020
COMPARED TO CLOSE TO 600 IN 2019. THE NET IMPACT, AFTER
MITIGATION EFFORTS, IS EXPECTED TO BE BETWEEN - EUR30 MILLION
AND - EUR 40 MILLION IN 2020

Source text for Eikon:  ID:nGNE6CFNwM 
Further company coverage:  SOAC.BR 

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