Rhodia revises its estimated results for the year 2000

26-Sep-2000

Paris, September 25, 2000 In view of the heightened increase in raw material prices, and in the light of the figures now available to the Group for the months of July and August, Rhodia has decided to revise its estimated results downwards for the year 2000 as a whole.

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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