Rhodia reports jump in earnings

Rhodia reports jump in earnings

4:26 PM, 1st August 2011
Rhodia reports jump in earnings
Jean-Pierre Clamadieu, Chairman and CEO of Rhodia.

· Highest ever EBITDA at €297 million.

· Volumes up by 7 per cent, reflecting solid business dynamics.

· Strong pricing power: €58 million net positive price impact at EBITDA level.

· Net profit of €113 million.

· Net debt at €1,085 million.

PARIS, FRANCE: Rhodia reported a strong overall performance with a positive contribution from all growth levers. In the second quarter, net sales increased by 22 per cent to €1,617 million from €1,330 million last year, driven by the combination of organic volume growth (7 per cent), the enlarged perimeter with Feixiang and overall increases in selling prices (16 per cent). The consumer chemicals and advanced materials business clusters were the major contributors to the group’s sales growth.

In Q2 2011, Rhodia reported its highest ever recurring EBITDA at €297 million, up 31 per cent compared to €226 million in Q2 2010. In a context of inflationary raw material and energy costs, pricing power generated a net positive price impact of €58 million.

Operating profit in Q2 2011 was up 49 per cent to €218 million, a sharp improvement compared to €146 million last year, reflecting the excellent performance in recurring EBITDA.

The net profit group share stood at €113 million in Q2 2011 compared to €43 million in the same period last year, reflecting the strong operating performance of the group. Earnings per share (basic) were €1.09 in Q2 2011 versus €0.43 in Q2 2010.

“In Q2, we delivered a further set of strong results, illustrating the remarkable execution of our profitable growth strategy. We continue to benefit from solid levels of demand across segments and regions as well as excellent pricing power,” commented Jean-Pierre Clamadieu, Chairman and CEO of Rhodia. “We now look forward to creating with Solvay a major player in the chemical industry. Together, we will combine our respective strengths to further accelerate our growth dynamic.”

Considering segmentwise performance, the consumer chemicals, combining Novecare, Coatis and Aroma Performance Global Business Units, serves consumer products markets, with an offering suited to the major trends of these markets.

 

In € million

Q2 10

 

Q2 11

Year-on-year

Variation

Net Sales

Recurring EBITDA

497

82

625

100

26 per cent

22 per cent

 

The advanced materials brings together silica and rare earth systems global business units, targeting high-performance industries such as energy-efficient tires, automotive catalysts or energy-efficient lighting. The growth of this cluster, greater than the organic growth of the markets served, is driven by the challenges of sustainable development.

 

In € million

Q2 10

 

Q2 11

Year-on-year

Variation

Net Sales

Recurring EBITDA

132

28

217

71

64 per cent

154 per cent

 

In Q2, the advanced materials activity benefited from a global volume expansion of over 20 per cent year on year. It also reported strong margins based on pricing power and optimized competitive sourcing.

For the polyamide materials demand was sustained in a normalized supply context.

 

In € million

Q2 10

 

Q2 11

Year-on-year

Variation

Net Sales

Recurring EBITDA

430

62

475

62

10 per cent

 -

 

The acetow and eco services operate in specific, mature and stable markets where partnerships with customers are built on reliability, quality of service and supply security. This cluster combines innovative capacity and operational excellence, by seizing opportunities in sustainable development.

 

In € million

Q2 10

 

Q2 11

Year-on-year

Variation

Net Sales

Recurring EBITDA

201

48

214

53

6.5 per cent

10 per cent

 

Acetow reported a robust performance driven by continuous sound demand. Eco services also benefited from a solid activity level.

The energy services segment relies on its expertise in energy optimization and the reduction of greenhouse gas emissions to develop “Climate Care” solutions that help respond to the challenges of sustainable development through the production of renewable energies.

 

In € million

Q2 10

 

Q2 11

Year-on-year

Variation

Net Sales

Recurring EBITDA

38

29

58

47

53 per cent

62 per cent

 

In Q2, energy services reported recurring EBITDA of €47 million, a significant increase against a low comparative base in Q2 2010 when part of CER sales was postponed to the second half of 2010.

Rhodia expects global economic growth should continue to be driven by sustained demand in fast-growing countries. Rhodia should therefore continue to benefit both from its strong exposure to high-growth economies and its business portfolio which is well-suited to global market mega trends.

Furthermore, in a context of high raw material and energy costs, the group confirms its ability to favourably manage selling prices.

Under current conditions, Rhodia reiterates its guidance for full year recurring EBITDA to exceed €1 billion, on track with its 2013-2015 profitable growth ambition.

© WOC News

 

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