(Reuters) – Solvay raised its full-year free cash flow guidance on Thursday after third-quarter results beat estimates supported by strong demand in the automotive, electronics, and building sectors, as well as cost cutting.
The company now sees free cash flow at the end of the year of around 800 million euros ($928 million), up from previous guidance of 750 million euros which had already been upgraded in July.
“Further actions are being implemented to account for the rising raw materials, energy and logistics costs,” Chief Executive Officer Ilham Kadri said in a statement.
Solvay, whose products range from base chemicals such as soda ash to speciality polymers, reported third-quarter sales of 2.57 billion euros, beating a company-provided consensus of 2.41 billion euros.
Earnings before interest, tax, depreciation and amortization (EBITDA) in the quarter stood at 599 million euros, also above a consensus of 570 million euros.
The company, which makes lithium derivatives for batteries, confirmed its guidance for full-year EBITDA of 2.2 to 2.3 billion euros, flagging however that energy prices would continue to be high in the fourth quarter.
($1 = 0.8624 euros)
(Reporting by Silvia Recchimuzzi in Gdansk; Editing by Mark Potter)
