Solvay warns of non-cash impairment of €1.5 billion
THE WHAT? Solvay has launched a buying and selling replace for the second quarter of the present monetary yr, warning that ‘market headwinds elevated sharply’ over the three-month interval, resulting in a 20 % drop in group gross sales throughout April and Could versus 2019 ranges.
THE DETAILS The Brussels-based components provider is subsequently finishing up an impairment evaluate and expects a non-cash impairment estimated at round €1.5 billion. Roughly 80 % is related to good will ensuing from the Cytec acquisition, and the steadiness is expounded to numerous tangible and intangible property.
“We proceed to behave decisively to mitigate the results of COVID-19 and we stay unrelenting in our concentrate on free money circulation era, value discount, and serving out clients,” Ilham Kadri, CEO mentioned in an announcement. “We’re accelerating supply of our G.R.O.W. strategic applications to ship superior progress by way of our management positions and innovation.”
THE WHY? Whereas the Belgian chemical compounds firm reported that its house & private care unit has resisted nicely, its companies associated to grease and fuel, automotive and aerospace have been considerably impacted by the GVC.