Chemical group Rhodia posts annual net profit

8th March 2007, Comments 0 comments

PARIS, March 7, 2007 (AFP) - Rhodia finally pulled out of the red last year after undergoing major restructuring, results showed Wednesday, the first time the French chemical group has posted an annual net profit since 2000.

PARIS, March 7, 2007 (AFP) - Rhodia finally pulled out of the red last year after undergoing major restructuring, results showed Wednesday, the first time the French chemical group has posted an annual net profit since 2000.

Net profit for 2006 came to 62 million euros (81 million dollars), Rhodia said in a statement, compared with a net loss of 616 million euros for previous year.

But the 2006 result was below predictions of 127 million euros made by analysts polled by Thomson Financial.

The final quarter of 2006 saw a net loss of 49 million euros, Rhodia said.

Rhodia had been in dire straits for years and was on the brink of bankruptcy in late 2003.

The positive results cheered investors, and Rhodia shares gained 1.13 percent to 2.69 euros in afternoon trade on the Paris stock exchange.

Since 2003, Rhodia has sold millions of euros in assets, carried out more than one billion euros' worth of capital increases and undertaken a broad restructuring program.

"2006 marks the successful delivery of Rhodia's recovery plan," chief executive Jean-Pierre Clamadieu said in a statement.

Copyright AFP

Subject: French news

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