Rhodia Improves Its First Half Net Income by a Hefty 22 Percent.

Chemical Market Reporter, August, 1999 by MILMO, SEAN

The company's sales fall 10 percent, but it cuts costs. RHODIA STILL EXPECTS to achieve a 75 percent increase in net profit this year after posting a 22 percent gain in net income during the first half. The company projects even stronger earnings in the second half because its results in the first six months were held back by non-recurring expenses, including the costs of restructuring its polyamides business and ending a US surfactants partnership with GAF Chemicals.

Rh6ne-Poulenc plans to sell its 68 percent stake in Rhodia in conjunction with its merger with Hoechst. In the second half, Rhodia should also benefit more from a program to cut fixed and manufacturing costs, as well as from savings on the purchase of raw materials. "We are...

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