Rockwood swings to Q3 net profit of $10.2m on lower charges

26 October 2009 12:19  [Source: ICIS news]

LONDON (ICIS news)--Rockwood Holdings' third-quarter net income from continuing operations increased to $10.2m (€6.8m) from a loss of $4.8m in the same period last year due to lower special charges, the US-based specialty chemicals company said on Monday.

The company had been hit by a $39.5m special charge in the third quarter of 2008, primarily related to foreign exchange losses on financing activities and mark-to-market valuation losses on interest rate hedging instruments. The 2009 third quarter included a special charge of just $3.8m, the company said in a statement.

Rockwood’s net sales in the quarter ending 30 September were down 10.7% year on year to $786.2m, while adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell 7.4% to $151.1million.

The Titanium Dioxide Pigments business was the only one to see both improved sales and EBITDA, but this was due to increased capacity, the company said.

"In the months ahead, we will continue to benefit from our proactive efforts towards managing our operations and maintaining our margins,” said Rockwood CEO Seifi Ghasemi.

“We expect our adjusted EBITDA margin to be between 18-19% of net sales as we move forward. In addition, as usual, we will maintain our focus to continue to generate a significant amount of free cash," Ghasemi added.

($1 = €0.67)

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By: Lucy Craymer
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