Rhodia aims for 40 percent surge in operating earnings
French chemicals group Rhodia said Monday it aimed to boost its operating earnings by 40 percent in the next three to five years through acquisitions and operations in emerging market countries.
"Our ambition is to turn Rhodia into a champion of profitable and responsible growth," chairman Jean-Pierre Clamadieu said in a statement.
He said the company wanted to achieve a yearly operating profit, excluding the sale of its carbon credits, of more than one billion euros (1.36 billion dollars) in the 2013-2015 period.
"This represents growth of around 40 percent compared to 2010 expectations."
Rhodia in the first half of the year reported a record operating profit of 447 million euros, including the sale of carbon credits.
Investors welcomed the announcement and Rhodia shares were up 1.49 percent at 17.73 euros at midday on a Paris market that was 1.28 percent weaker overall.
The company said it wanted to step up acquisitions similar to its purchase of the Chinese group Feixiang Chemicals in June.
Rhodia, which relies on emerging market countries for 48 percent of its sales, is also active in Brazil and has high hopes for its prospects in India.
"For us, India is a new frontier and making an acquisition there could be an option, on condition that we can identify the right target," Clamadieu told the French financial paper Les Echos.
© 2010 AFP