Rhodia posts 4.5% y-o-y drop in Q4 op profit

28 February 2008 07:21  [Source: ICIS news]

MUMBAI (ICIS news)--Rhodia posted a 4.5% year-on-year drop in its fourth quarter operating profit to €84m ($127.3m) with a negative foreign exchange impact offsetting solid volume growth and price increases, French specialty chemical company said on Thursday.

For the quarter, the company’s net sales were up 4.1% to €1.26bn, as compared with the year-ago period

“Market demand continued to drive solid volume growth of 7.5%. Price increases in local currency of 2% offset the €24m rise in raw material and energy costs,” the company said.

In the fourth quarter the company posted a net profit of €22m, against a net loss of €49m in the year-ago period, it added.

For the full year period, the company’s operating profit was up 24.8% year-on-year to €448m and its net sales were up 5.6% to €5.08bn.

For the year, the company’s net profit almost doubled to €129m, mainly driven by the product price increase, which exceeded the rise in raw materials and energy costs.

“In 2007 we have demonstrated that Rhodia is well positioned to meet future challenges and to deliver its profitable growth strategy,” said Jean-Pierre Clamadieu, the company CEO.

“Fundamental demand drivers for our products currently remain sound and Rhodia expects to see further volume growth in 2008, especially from the high growth markets of Asia and Latin America,” the company said.

Rhodia will continue to defend operating profit by passing on cost increases through price rises, it added.

Shares of the company were flat at €21.35 on the Paris Stock Exchange at 7:13 GMT on the Paris Stock Exchange.

($1 = €0.66)

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