update 2-solvay sets guidance built on high-end plastics, chemicals - polymers in agriculture
* Profit is expected to grow at the same rate in the next few years * new CEO may be appointed in the next few weeks (
CFO Phone, update after opening shares)
Brussels, Philippe brunkinthorpe, 24 (Reuters)-
Belgium's Solvay forecast on Monday that its profits will grow at a similar rate in 2019 --
2021 from the first three-
During the year, its advanced plastics and chemicals sector expanded the most.
The group, which produces products in more than 60 countries, has been streamlining its operations to focus more on specific applications in the aerospace, automotive and oil and gas industries where it can make higher profits
Before interest, taxes, depreciation and amortization, the company said, the base income increased by 6% to 9% (EBITDA)
Outlook, excluding the impact of changes in foreign exchange and changes in company production
Up, compare with mid's goalsto high-
2016-percentage increase in single digits2018.
Solvay believes that this guidance is a possible and credible result, not a formal goal, as it is still the appointment of a chief executive Jean-
Pierre kramadio, chairman of the French utility company.
Mr. Solvey said he expects to announce his successor in the coming weeks.
Karim Hajjar, chief financial officer, said growth will be 7 in the current period. 5-8. 0 percent.
"When you compare our current 6-
9%, actually it is in line, certainly not lower, "he said in a conference call before Investor Day's speech.
Suwei shares rose 0.
9% at 117.
GMT was 0820 euros, the strongest in the weaker STOXX 600 chemical index.
KBC Securities says the new mid-
Long-term goals are more optimistic than expected.
The company said it would currently maintain a "hold" rating and a price target of 125 euros.
The Netherlands international group said the goal was higher than consensus expectations.
Advanced materials will lead the growth
Performance Polymers on cars and aircraft, as well as advanced formulations for mining, oil and gas, and agriculture.
It is expected that the organic base of these two businesses EBITDA will grow at an average annual rate of 6-10% in three monthsyear period.
Performance Chemicals for the production of soda ash for glass are expected to grow by 2-6%.
Free cash flow should increase by 10-
An average of 15% per year.
The company also said it would increase its Solef polyammonium (
Poly partial two)
More than 35% of the polymer in France is trying to benefit from an increase in battery demand for electric vehicles.
Solef Poly disodium is used to improve the energy storage of the battery and reduce the weight of the battery. ($1 = 0. 8527 euros)(
Supplementary report by Alan Charlish of Gdynia, edited by Louise paradise and Keith will)