UpdateFrance’s Rhodia Q1 net profit soars to €151m on strong prices

05 May 2011 11:15  [Source: ICIS news]

(Adds details on Rhodia's acquisitions, Solvay's bid to acquire Rhodia and the company's outlook.)

SINGAPORE (ICIS)--Rhodia’s first-quarter net profit more than doubled to €151m ($225m), up from €69m in the same period last year, as a result of strong demand and higher product prices, the France-based polyamide and specialty chemicals producer said on Thursday.

First-quarter net sales jumped 28% year on year to €1.5bn, Rhodia said, adding that this was partly driven by the contribution of the company’s acquisition of China-based Feixiang Chemicals.

“Our pricing power, differentiated geographic positions and recent acquisitions all contributed effectively to the quarter’s strong momentum,” chairman and CEO Jean-Pierre Clamadieu said in a statement.

Recurring earnings before interest, tax, depreciation and amortisation (EBITDA) rose 28% to €283m, it added.

“Anticipating sound business conditions to continue, we now expect our full year EBITDA to exceed €1bn, on track with our mid-term ambition,” Clamadieu said.

Belgium’s Solvay last month announced its intention to acquire Rhodia for €3.4bn, or a cash offer of €31.60/share, in order to create a major player in the chemicals industry. At that time, Solvay said it expected the deal to close at the end of August.

In its outlook, Rhodia said global economic growth should remain strong throughout the year, driven by sustained demand especially in fast growing countries.

($1 = €0.67)

Additional reporting by Tahir Ikram

For more on Rhodia visit ICIS company intelligence

By: Tanzeel Akhtar
+44 208 652 3214

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