Soda ash performed better than in the first half of 1997 due to steady European demand as well as the modest, but positive contribution of Solvay SODI in Bulgaria, which compensated for negative pressure on American exports to Asia. Prices for hydrogen peroxide remain low but are recovering in Europe. Fluorinated activities continue to evolve favorably. Barium and strontium carbonates remain at a satisfactory level from the first half of 1997 despite the Asian crisis. Nonetheless, for the past few months, the sales prices of PVC and HDPE in Europe have dropped more markedly than the price of their main raw material, ethylene.
Polypropylene continues to experience pressure on prices and margins.
The Automotive Division saw the strongest improvement compared to the first half of 1997, attributable to an increase in sales of fuel tanks in the American and European markets. The Pipes and Fittings division experienced limited growth in its results even though the European market remains very competitive. Industrial Films continued to record good results in particular in the most innovative market applications and Decoration continued to improve performance. As for the Year 2000, the Group's plan involves the inventory and checking of all internal systems involved. Externally, the Group has begun a dialogue with its customers and suppliers to help assure that there will be no disruption of services.