Recovery Of Solvay In 1995 Continues In 1996

In 1995, the Belgian chemical and pharmaceutical group Solvay headed back into profit with good prospects for growth, Yves Boel, group chairman, told shareholders at their annual general meeting last month.

Net profits in 1995 were 12.5 billion Belgian francs ($397.4 million), rising 57% from those achieved in 1994. The first six months of the year, which were marked by very strong economic activity, ended with a net profit of 8.3 billion francs. During the second half of the year, however, a decline in demand and some destocking, especially in the plastics sector, reduced the group's earnings to 4.2 billion francs.

Economic activities in Europe in 1995 did not recover as well as had been expected. There was sustained recovery in the first six months but this slackened off during the second half and was near recession for the six months either side of the new year.