UpdateRhodia forecasts stable full-year results

07 May 2008 11:01  [Source: ICIS news]

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PARIS (ICIS news)--French chemical company Rhodia said on Wednesday it expected its end of year results to be stable compared with 2007 after recording a year-on-year drop in first-quarter net profits.

 

“Given the current exchange rate and the increasing price of raw materials, Rhodia expects recurring EBITDA [earnings before interest, taxes, depreciation and amortisation] of between 0-5% compared to 2007, ” said company chairman Jean-Pierre Clamadieu.

  

The company had previously suggested that increases in the price of raw materials would cost the company €200-300 million over the whole of 2008 and said the final figure would be “at the top end of this range”.

 

Meanwhile, unfavourable exchange rates would be likely to cost the company “around a €100 million”, said Clamadieu.

 

However, he said price increases of its chemical products would largely offset these problems - a bullish attitude that pushed the company's share price up 8.5% to €14.70 on the Paris stock exchange at 09:51 GMT.

 

The company posted a 29% fall in net profits for the first quarter to €42m ($65.6m), due to high raw material costs and unfavourable exchange rates, it said.

 

($1 = €0.64)

 

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By: Philippa Jones
+44 20 8652 3214

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