Rhodia Q1 reflects growth strategy
Confident in success of Solvay project
Chemical company Rhodia, which is in the process of being acquired by Belgian firm Solvay, has announced robust results for the first quarter of 2011. Net sales increased 28% on the prior year period to reach over €1.5bn, while the company achieved record quarter profitability with recurring earnings before interest, taxes, depreciation, and amortisation (EBITDA) of €283m, compared to €221m in the first quarter of 2010.
Operating profit was up 74% to €243m, a reflection of both the strong performance in recurring EBITDA and a €25m capital gain from the sale of a minority investment stake.
Meanwhile, the company’s consumer chemicals business unit, which includes Novecare and Aroma Performance, achieved net sales of €585m in the first quarter of 2011 – a year on year variation of 39%.
Commenting on the quarter, Rhodia chairman and ceo Jean-Pierre Clamadieu said: “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.
“This excellent performance reinforces our confidence in our project to create with Solvay a major player in the chemical industry.”