Solvay's 9-month profit down 34% on Fortis

Belgian drugs and chemicals firm Solvay says that sales in the first nine months of 2008 totaled 7.22 billion euros ($8.99 billion), flat on the comparable period the year before, while net income declined 34% to 426.0 million euros due to a 256 million-euro write-down on holdings in banking and insurance company Fortis.

Sales from the pharmaceuticals sector totaled 1.94 billion euros, up 1%, with growth in emerging countries and in Europe helping to offset unfavorable exchange rates and significant pressures resulting from generic drug competition, especially in France and in the USA for cannabinoid drug Marinol. Operating results were up 11% to 372.0 million euros, boosted by the sale of non-strategic products during the first half of 2008, more than compensating for unfavorable exchange rates as well as the sustained investments in R&D (17.4% of sales) and in the co-promotion of Simcor (niaspan/simvastatin) in the USA.