US Rockwood aims to boost EPS growth by over 20%/year - CEO

09 November 2010 22:17  [Source: ICIS news]

NEW YORK (ICIS)--US-based specialty chemical company Rockwood Holdings is aiming to boost its earnings per share (EPS) by more than 20% annually through 2015, its chief executive said on Tuesday.

Wall Street consensus estimates call for Rockwood to post EPS of $2.03 (€1.46) in 2010 and $2.38 in 2011, representing growth of 17.2%.

The company is targeting average sales growth of around 8%, with organic growth accounting for 5% and bolt-on acquisitions about 3%, said chairman, president and CEO Seifi Ghasemi. He spoke the company’s investor day in New York.

Rockwood is also aiming to achieve adjusted earnings before interest, tax, depreciation and amortization (EBITDA) margins of over 22%, it said. In the last 12 months ended September 2010, the company had an EBITDA margin of 19.7%.

The company also said it hopes to reduce its leverage ratio – net debt/EBITDA – to less than 2.0 times in the next two years.

At the end of the third quarter, the company had a net debt/EBITDA ratio of 2.89 times – down significantly from nearly 7 times in 2004.

Rockwood is a producer of specialty titanium dioxide, pigments, lithium compounds, advanced ceramics and surface treatment chemicals.

($1 = €0.72)

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By: Joseph Chang
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