Rhodia Strengthens Its Financial Goals.(Brief Article)

Chemical Market Reporter, October, 1999

Rhodia is upgrading its midterm sales and profits targets, Jean-Pierre Tirouflet, the company's chairman and chief executive officer, said last week at the start of a road show on the sale of Rhone-Poulenc's 67 percent stake in the company. Rhodia is already forecasting a 75 percent increase in net profit this year.

Under the company's new target, this year's profit will now be doubled in three or four years. On average, sales growth will be 2 percent above that of GDP. The sales margin target, based on earnings before interest, tax, depreciation and amortization (EBITDA), is being raised from 15 percent in 2000 to 18 percent. The objective for return on capital employed will be increased from 12 percent next year to 14 percent in the midterm.