Rhodia reports soaring results strong pricing

Rhodia reports soaring results on strong pricing

12:30 PM, 18th June 2011
Rhodia reports soaring results on strong pricing
Jean-Pierre Clamadieu, Chairman & CEO, Rhodia.

  • Record profitability with EBITDA up 28 per cent to € 283 million
  • Volumes up 9 per cent, reflecting sound business dynamics
  • Strong € 51 million pricing power impact at EBITDA level
  • Net profit of € 151 million
  • Full year EBITDA objective increased to over €1 billion

PARIS, FRANCE: Rhodia reported good results driven by sound business dynamics and strong pricing power. In the first quarter, net sales increased by 28 per cent to € 1,503 million from € 1,176 million last year, driven by the positive contribution of all growth levers: a 9 per cent organic volume growth, owing to sustained momentum across businesses and regions, a 13 per cent overall price increase and the contribution of the Feixiang acquisition.

Rhodia reported new record quarter profitability with a recurring EBITDA of € 283 million compared to € 221 million in Q1 2010. This performance was driven by both, strong level of demand and excellent pricing power, the later reflecting the quality of the portfolio and generating a net positive price impact of € 51 million in Q1 2011. Growth was particularly robust at consumer chemicals and advanced materials, both clusters totalling 48 per cent of the group’s EBITDA in Q1 versus 36 per cent in the same period last year, confirming their power to drive the Group’s superior growth.

Also the company announced on April 4th that combining with Solvay it planned to create a major player in chemicals, a global leader in its businesses.

“In Q1, Rhodia continued to improve its performance, reflecting the remarkable execution of its profitable growth strategy. Our pricing power, differentiated geographic positions and recent acquisitions all contributed effectively to the quarter strong momentum. Anticipating sound business conditions to continue, we now expect our full year EBITDA to exceed € 1 billion, on track with our mid-term ambition,” commented Jean-Pierre Clamadieu, Chairman & CEO, Rhodia.

Operating profit in Q1 was up 74 per cent to € 243 million, a sharp improvement compared to € 140 million last year, reflecting the excellent performance in recurring EBITDA.

The net profit group share stood at a record level of € 151 million in Q1 2011 compared to € 69 million in the same period last year, reflecting the strong operating performance. Earnings per Share were € 1.45 in Q1 2011 versus € 0.70 in Q1 2010.

Rodia continues to expect benefit from sustained demand, especially in fast-growing countries and from its exposure to high-growth economies and its portfolio well-suited to global market mega trends. In a context of high raw material and energy costs, the group confirms its ability to favourably manage selling prices.

From its segment wise growth, In Q1, consumer chemicals continued to enjoy strong growth across segments (volumes up 16 per cent compared to the same period last year). Driven by robust business dynamics, advanced materials activity saw an overall organic volume growth up by 25 per cent year-on-year. Seeing strong demand in a tight supply environment, sound engineering plastics saw organic volume growth up 10 per cent year-on-year, compensated a shortfall at polyamide & intermediates (P&I). Acetow performance in Q1 remained robust and demand satisfactory. Energy services reported good CER/ERU volumes and in Q2, CER activity is said to remain sequentially stable.

© WOC News

 

 

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