06 May 2009 07:11 [Source: ICIS news]
SINGAPORE (ICIS news)--French specialty chemicals firm Rhodia said on Wednesday it had incurred a first quarter net loss of €134m ($178.7m) as sales took a beating from slumping demand.
In the same period in 2008, Rhodia made €42m in net profit.
The company said it had spent €20m in restructuring in the three months to March 2009. Sales declined 22.4% year-on-year to €920m with operating losses of €91m.
“Net sales were down … as a result of a contraction in volumes primarily linked to the demand crisis in the automotive, construction and other industrial end-markets across geographic zones,” Rhodia said in a statement.
In the coming quarters, the company said it was bent on keeping financial discipline and would continue to pursue action plans to remain competitive.
“Uncertainty still prevails in a depressed economic environment. No signs of recovery have been seen in Europe and ?xml:namespace>
The company said it expected customer de-stocking to be complete by the end of the second quarter. “Rhodia has also started to perceive the first signs of slight demand recovery in Asia and
($1 = €0.75)
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