Rhodia revises its estimated results for the year 2000
Rhodia continued to enjoy positive sales growth in July and August : +10 % compared with 1999, at the same structure and rate of exchange. However, the operating margin (EBITDA/Sales) suffered from the impact of the new rise in raw material and energy prices, resulting from oil price increases of 30% in the space of two months.
In view of this situation, Rhodia has decided to review its estimates for the year 2000 as a whole compared with 1999 :
* erosion of EBITDA margin as a percent of sales,
* progression in EBITDA
* slight decline in Net Income
In order to continue the resistance against the squeeze on margins, Rhodia has intensified ;
* its commercial efforts to increase both its selling prices and sales volumes and
* its global change initiatives designed to cut cost.
As a result, the Group will be in a position to offset a growing part of the negative impact of the increase in raw material prices as well as one-time costs, principally linked to the integration of Albright & Wilson and Chirex.
The Group will publish its results for the third quarter of the year on October 26, 2000.
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