UPDATE 3-Solvay Q3 profit tops estimates, markets tough
* Q3 REBIT 285 mln euros ($420 mln) vs forecast 211 mln
* Says markets remain difficult
* Reiterates full-year outlook for lower operating profit
* Shares up 2.4 pct
(Adds analyst's comments, further details, share price)
AMSTERDAM, Oct 29 (Reuters) - Belgium's Solvay (SOLB.BR) reported better-than-expected operating profit on strong results from the drugs unit it is selling, but said markets remained tough and warned of possible pressure on plastics margins.
Recurring earnings before interest and taxes (REBIT) at the drugs, chemicals and plastics maker fell 2.4 percent to 285 million euros in the third quarter, beating the average forecast of 211 million given in a Reuters poll of 10 analysts. Sales fell 10 percent to 2.24 billion euros.
Shares in Solvay had risen 2.4 percent to 67.6 euros by 0826 GMT, outperforming a flat DJ Stoxx European chemicals index .SX4P.
"I'm positive on the third quarter, but indications for the fourth quarter provide some element of caution," Petercam analyst Jan van den Bossche said.
"The third-quarter results season is providing a reality check that there is not a straight line into this recovery, and people are forgetting that there was always going to be a bumpy road."
Solvay's results have come under pressure this year as a slump in the automotive and construction sector hit sales at its plastics unit, while lower caustic soda prices have also hurt its chemical business.
"The chemicals and plastics sector showed good resilience against the crisis ... but the market conditions remain difficult. The full-year operating result of the group will be lower than last year," Solvay said in a statement.
On an operating level, a 63 percent fall in REBIT to 39 million euros at the plastics unit beat estimates of 18 million euros, with sales better than expected due to improving demand.
Operating profit of 56 million euros at the chemicals unit, supported by cost savings and lower energy costs, was in line with the average estimate of 53 million euros.
Solvay, which agreed to sell its drugs unit to Abbott for 4.5 billion euros cash in September to reinvest in its chemicals and plastics operations, said REBIT at the pharma unit was 204 million euros, well above average estimates of 143 million. Continued...
