Solvay's 2006 sales rise 10% to $12.35 billion

Belgium-based chemicals, plastics and drugs firm Solvay, says that its full-year 2006 sales rose 10% on the previous year, to a record 9.4 billion euros ($12.35 billion), with all three of its business areas showing significant improvement. The group's net income totaled 817.0 million euros, level with last year, reflecting the impact of non-operating items costing 40.0 million euros, while in 2005, it included a positive balance of non-operating items of 119.0 million euros. In the fourth quarter of 2006, the group's net income improved 11% to 146.0 million euros.

Pharmaceutical sales reached 2.6 billion euros in 2006, up 15%, with operating results rising 49% to 451.0 million euros, as the operating margin improved to 17% from 13%. Solvay says this confirms the successful integration of independent French drug company Fournier Pharma which it bought for $1.7 billion (Marketletter April 4, 2005), and also reflects the significant growth of its cardiometabolic products, with 413.0 million euros in revenues for the blockbuster drug fenofibrate.

The firm's fourth quarter included the receipt of two milestone payments on the completion of major steps in R&D for bifeprunox mesilate, a novel atypical antipsychotic, and SLV319, a cannabinoid type 1 receptor antagonist. However, during the period, drug sales dropped 7% to 666.0 million euros, as recurrent earnings before interest and taxes, fell 15% to 115.0 million euros, due to the effect of one-off items such as inventory reduction by American distributors and the expiration of marketing rights to the proton pump inhibitor Pantoloc (pantoprazole).