Rhodia Q3 net profits surge 24% on price increases

06 November 2008 09:45  [Source: ICIS news]

LONDON (ICIS news)--Rhodia’s net profits surged 24% in the third quarter to €56m ($73m) from €45m in the same period last year, as higher selling prices offset record raw material and energy costs, the French specialty chemicals company said on Thursday.

Net sales were 3.1% higher than the third quarter last year at €1.22bn, while at constant exchange rates they rose 6.3%.

Operating profits fell 17% to €87m, mainly due to the volume phasing impact of Certified Emissions Reductions (CERs).

Negative effects from lower volumes in the polyamide division were mostly offset by good performance in other enterprises, particularly Novecare, said Rhodia.

Price increases of €158m fully offset both a €139m increase in raw material and energy costs as well as a transactional foreign exchange impact of €17m, the company said.

“In the third quarter, Rhodia confirmed once again its strong pricing power which allowed the group to offset not only record raw material and energy cost increases, but also the negative foreign exchange impact," said chairman and CEO Jean-Pierre Clamadieu.

He added that the company confirmed its 2008 financial objectives of recurring earnings before interest, tax, depreciation and amortisation (EBITDA) within 5% of the €758m level achieved in 2007.

($1 = €0.77)

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By: Hilde Ovrebekk
+44 20 8652 3214

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