Chemical group Rhodia reports net profit

11th May 2007, Comments 0 comments

PARIS, May 11, 2007 (AFP) - French chemical group Rhodia reported first quarter net earnings of 59 million euros (80 million dollars), wiping out a loss of 36 million euros in the same period last year.

PARIS, May 11, 2007 (AFP) - French chemical group Rhodia reported first quarter net earnings of 59 million euros (80 million dollars), wiping out a loss of 36 million euros in the same period last year.

Rhodia, after accumulating losses each year since 2000, finally returned to profit in 2006, when it recorded annual net earnings of 62 million euros despite heavy restructuring obligations.

Despite the profitable performance, Rhodia shares in late-day trade here were down 3.16 percent at 3.06 euros.

First quarter results were boosted by the sale of Rhodia's silicon operations to the Chinese group Blue Star for about 80 million euros but were weighed down by restructuring costs, said Rhodia general director Jean-Pierre Clamadieu.

But he added in a conference call: "We are firmly set on the road to profitable growth."

The company this year is looking to "a strong increase" in operating earnings and positive cash flow "under market conditions that remain satisfactory ... in an environment high raw materials and enery prices," Clamadieu said.

He added that the group was not ruling out targeted acquisitions, although he said he foresaw no "major movement."


Copyright AFP

Subject: French news

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