Solvay writes off $1.7 billion and warns of depressed sales

The slump in transportation-related businesses caused by COVID-19 is dragging on Solvay. The Belgian firm reported a 40% drop in sales to the oil and gas, auto, and aerospace sectors in April and May compared with those months in 2019. It also expects to take a $1.7 billion write-off, 80% of which is related to its 2015 purchase of the aerospace composites maker Cytec Industries, saying COVID-19 pressures reduced the values of those businesses. Construction and mining sales were down 20%. Solvay says other areas, including health care and electronics, performed better, leading to an overall 20% sales decline compared with last year.