30 July 2010 13:07 [Source: ICIS news]
LONDON (ICIS)--Rhodia said on Friday the current business environment shows no signs of a slowdown, as the France-based polyamide and specialties producer released strong second-quarter financial results.
“Summer seasonality is expected to be less pronounced than usual,” said Rhodia in an upbeat outlook.
“Despite the anticipated softening of the global economic recovery in the second half of 2010, Rhodia expects a limited impact in the markets it serves. Business dynamics should remain satisfactory thanks to healthy demand in fast growing markets,” it said.
Rhodia swung to net profit of €43m ($56.6m) in the second quarter of 2010, compared with a loss of €40m in the same period last year, as a result of robust sales.
Sales for the three-month period jumped 35% year on year to €1.33bn, with sales volumes up 16%, it said.
Recurring earnings before interest, tax, depreciation and amortisation (EBITDA) more than doubled from the 2009 second quarter to €226m, with a net positive price impact of €66m from “strong volumes and pricing power” – higher prices of raw material and energy costs.
“Our second-quarter performance confirms Rhodia’s ability to generate more than €200m of recurring EBITDA per quarter, demonstrating a step-up in profitability,” said chairman and CEO Jean-Pierre Clamadieu. “We are confident this level will remain a reference point in the forthcoming quarters,” he added.
Rhodia said its pricing power was particularly strong in its polyamide segment, where volumes were higher and markets tight. Earnings in this segment increased to €80m from €6m in the 2009 second quarter.
Profits from the Novecare specialties segment and the Silcea silica-based businesses were also sharply higher. Industrial and coatings volumes improved worldwide. Volumes in oilfield chemicals had improved quarter by quarter, Rhodia said.
($1 = €0.76)
Initial reporting by Pearl Bantillo
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