ERJ staff report (RD)
Paris -- Rhodia Silcea, a silica and diphenol subsidiary of the French company Rhodia, has reported sales up by 33 percent to Euro 187 million in the first quarter of 2010 (Q1), compared to the same period last year.
The silica unit also reported a record EBITDA level of Euro 43 million in Q1, up from Euro 4 million last year. â€œThis performance was mainly driven by a strong demand momentum across its three segments with volumes up by 39 percent year-on-year as well as solid pricing power,â€ Rhodia said in a 28 April results statement.
Rhodia expects Silcea to report â€œrobust salesâ€ in Q2. The unit produces silicas for tyres, earth-based materials for the automotive emissions reduction, lighting and electronics markets, and diphenols for flavors and fragrances markets, the statement added.
Overall, Rhodia reported Q1 sales up 23 percent to Euro 1176 million, compared to last year, with volumes up 25 percent year-on-year and recurring EBITDA up to Euro 221 million in the first quarter from Euro -4 million in Q1 2009.
â€œRhodia posted a record performance in the first quarter, driven by volume recovery and strong pricing power,â€ said Rhodia ceo, Jean-Pierre Clamadieu. â€œWe continued to generate a significant amount of cash flow and further reduced our debt to its lowest level ever. These achievements combined with the ongoing business momentum lead us to revise our guidance upwards,â€ he added.
In the light of the Q1 performance and the ongoing business dynamics, Rhodia has improved its 2010 objectives. The Group now expects a full-year recurring EBITDA around 50 percent higher than its 2009 level, the statement said.
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Press release from Rhodia