* Q3 recurring core profit 554 mln euros vs forecast 515 mln
* Record results in consumer chemicals, speciality plastics
* Core chemicals also do well, PVC remains weak
* Keeps outlook of similar REBITDA in 2012 to 2011
(Adds details, background)
BRUSSELS, Oct 25 Belgian chemicals and plastics
maker Solvay reported a larger-than-expected core
profit on Thursday, with record results from its consumer
chemicals and speciality plastics.
The maker of PVC used for building and soda ash for glass
said its third-quarter recurring core profit rose 4 percent to
554 million euros ($719 million). The average forecast in a
Reuters poll of nine analysts was 515 million euros.
Solvay said that despite tough market conditions for PVC and
a fragile economy, economies of scale and savings meant it
expected to make a recurring core profit this year roughly the
same as last year.
The company added a slowdown of some market segments and
seasonal inventory management would impact the fourth quarter.
Solvay has suffered from a depressed construction sector
buying less of its PVC for drainage pipes and window frames.
However, having bought French chemicals group Rhodia last
year for 3.4 billion euros, it is set on course for strong
growth in speciality chemicals and plastics.
It made record results in its speciality polymers division,
due to strong demand for high performance materials in the oil
and gas, water and healthcare sectors, and in its consumer
chemicals division, which supplies ingredients for skin and hair
Core chemicals such as soda ash, caustic soda and bleaching
agent hydrogen peroxide also fared well, with core profit of the
Essential Chemicals unit rising 28 percent due to higher volumes
Earlier on Thursday, German chemicals giant BASF
stuck to its outlook for higher operating earnings this year,
shored up by its oil and pesticides divisions, which are
outweighing a decline in core chemicals.
Solvay agreed to sell its pharmaceutical activities to
Abbott Laboratories in September 2009 for 4.5 billion
euros with the aim of reinvesting in chemicals and plastics.
($1 = 0.7711 euros)
(Reporting by Philip Blenkinsop; Editing by Mark Potter)