By Olivier Cherfan and PierreJohn Felcenloben
(Reuters) – Solvay on Friday announced new leadership teams to be appointed upon its planned split, after the Belgian chemicals producer’s third-quarter sales slumped on lower volumes.
Shareholders will vote on the proposed split into two listed entities on Dec. 8. The de-merger would lead to the creation of specialty chemicals-focused Syensqo, while a company retaining the Solvay name and listing would focus on essential chemicals.
Ilham Kadri, current chief executive of Solvay, will become the CEO of Syensqo, while Philippe Kehren will take the top position at the new Solvay, the company said.
The group, whose products include base chemicals such as soda ash and specialty polymers used in batteries, said that pending shareholders’ approval, Syensqo would start trading on Dec. 11.
Kadri said in a post-earnings call the new management teams “would defend their equities stories” in front of investors during the group’s Capital Markets Day on Nov. 13, when it will also unveil a roadmap for the new entities starting from 2024.
Finance chief Karim Hajjar was not included in either entity’s leadership, and Solvay confirmed to Reuters via email he would be leaving the company after the split.
Solvay’s sales fell 20.3% organically to 2.75 billion euros ($2.92 billion) in the third quarter, below analysts’ estimate of 3.03 billion in a company-compiled consensus, as a weakened economy weighed on volumes across its markets.
Solvay said it expected 2023 core earnings (EBITDA) to be at the lower end of its prior guidance of between a decline of 5% and an increase of 2%.
Quarterly underlying EBITDA declined 18.5% organically to 702 million euros, 3% ahead of expectations. Its EBITDA margin was slightly up at 25.6%.
“We are very focused on the bottom line, and cash, that’s what creates the value,” Hajjar said in the media call.
Shares in Solvay were down 2.2% at 0847 GMT.
($1 = 0.9406 euros)
(Reporting by Pierre John Felcenloben and Olivier Cherfan in Gdansk; editing by Milla Nissi, robeert birsel)
