Rhodia's Third Quarter 2005 Results: EBITDA increases by 13% confirming Rhodia's operational recovery.PARIS Paris, in Greek mythology Paris or Alexander, in Greek mythology, son of Priam and Hecuba and brother of Hector. Because it was prophesied that he would cause the destruction of Troy, Paris was abandoned on Mt. -- Rhodia The word Rhodia has several uses. It may refer to:
See: New York Stock Exchange :RHA RHA Residence Hall Association RHA Regional Health Authority RHA Road Haulage Association RHA Rental Housing Association RHA Royal Horse Artillery (a British Regiment) RHA Royal Hibernian Academy ): --Net sales(a) stable like for like at 1,238 million euros, versus 1,249 million euros in the third-quarter 2004. This reflects the Rhodia Group's (NYSE:RHA) pricing power Pricing Power An economic term referring to the effect that a change in a firm's product price has on the quantity demanded of that product. Pricing power ties in with the "Price Elasticity of Demand. in a context of slightly lower volumes in comparison with the strong third quarter 2004. --13% increase in like for like recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (b) versus the third-quarter 2004 despite the impact of natural disasters. This increase results from an assertive as·ser·tive adj. Inclined to bold or confident assertion; aggressively self-assured. as·ser  tive·ly adv. strategy to raise prices, from our
restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). plans and efficient cost control.--Effective cash management drives the reduction in consolidated net debt by 113 million euros from June June: see month. 30, 2005. --Continuous refocusing Noun 1. refocusing - focusing again focalisation, focalization, focusing - the act of bringing into focus of the Group's portfolio. --Greenhouse gas emission reduction projects in South Korea Korea (kôrē`ə, kə–), Korean Hanguk or Choson, region and historic country (85,049 sq mi/220,277 sq km), E Asia. and Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. are in the final UNFCCC UNFCCC United Nations Framework Convention on Climate Change (UN) approval phase.
Summary income statement for third-quarter 2005 (unaudited)
In millions of euros, under IFRS
Q3 2004 Q3 2004
Historical Restated(c) Q3 2005
----------------------------------------------------------------------
Net sales (a) 1,213 1,249 1,238
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Recurring EBITDA (b) 94 92 104
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Recurring EBITDA margin 7.7% 7.4% 8.4%
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Operating income/(loss) (32) (32) 2
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Net income /(loss) (45) - (122)
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The 2004 and 2005 results of businesses sold or in a process of being
sold (mainly sulfuric acid and phosphate operations in Rieme and the
Latex business) have been reclassified as "discontinued operations".
"Rhodia's operational recovery is now well underway," says Chief Executive Officer Jean-Pierre Jean-Pierre may refer to:
"We can confirm that 2005 will see a substantial increase in our recurring EBITDA compared with 2004, with improved fundamentals and a largely refocused business portfolio."
(a) Excluding services and other revenues
(b) Before restructuring costs, amortizations and other gains and
losses
(c) At constant scope and currency conversion
--Improved operating performance In a quarter traditionally impacted by seasonal swings, net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight (a) held firm at 1,238 million euros like-for-like, versus 1,249 million euros in third-quarter 2004. Business levels remained generally firm over the period, despite a slight 3.4% decline in volumes in comparison with an especially strong third-quarter 2004. For the fifth straight quarter, the Group enjoyed the positive impact of the price increases applied across all businesses (up 4.9%), which more than offset higher raw materials costs. With gross savings of 27 million euros (before inflation) for the quarter, the Group is on track to meet its objective of reducing fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). by 114 million euros in 2005. Recurring EBITDA(b) rose by 13% to 104 million euros like for like for the period. The impact of Hurricane Katrina  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. and the flooding of the
Emmenbrucke site in Switzerland Switzerland (swĭt`sərlənd), Fr. Suisse, Ger. Schweiz, Ital. Svizzera, officially Swiss Confederation, federal republic (2005 est. pop. 7,489,000), 15,941 sq mi (41,287 sq km), central Europe. are estimated at 10 million euros for
the period, with a similar impact expected in the last quarter of this
year. The recurring EBITDA margin improved to 8.4% in the third quarter,
from 7.4% for the same quarter in 2004.Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. amounted to 2 million euros, versus an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of 32 million euros in third-quarter 2004, primarily reflecting a reduction in restructuring costs. Net financial expenses amounted to 78 million euros, versus 41 million euros in the prior-year period. It included 59 million euros in interest expense and 9 million euros in unrealized foreign exchange losses (versus 18 million euros in unrealized exchange gains in third-quarter 2004). Net Income amounted to a loss of 122 million euros, versus a loss of 45 million euros in third-quarter 2004. Discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. contributed a loss of 39 million euros, compared to income of 53 million euros a year earlier due to capital gains on disposals. --Net debt reduced by 113 million euros thanks to efficient cash management Capital expenditure totaled 77 million euros in the third quarter. The Working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. were reduced by 120 million euros during the quarter and the ratio of working capital requirement to net sales continued to improve, decreasing to 13.9% from 16.6% in third-quarter 2004. Free cash flow(c) amounted to 101 million euros for the quarter. Consolidated net debt totaled 2,533 million euros, a 113 million euros decrease on June 30, 2005. --Continued focusing of the business portfolio A number of divestments were announced in the third quarter, including the sale of the sulfuric acid sulfuric acid, chemical compound, H2SO4, colorless, odorless, extremely corrosive, oily liquid. It is sometimes called oil of vitriol. Concentrated Sulfuric Acid and phosphates phosphates (fos´fāts), n.pl the organic compounds of phosphorus. The blood phosphate level is normally 2.5 mg to 5 mg/100 ml. It is low in rickets and early hyperparathyroidism and high in tetany and nephritis. manufacturing units in Rieme and of the latex latex, emulsion of a polymer (e.g., rubber) in water (see colloid). Natural latexes are produced by a number of plants, are usually white in color, and often contain, in addition to rubber, various gums, oils, and waxes. business. Rhodia has signed a new letter of intent covering the sale to the RadiciGroup of its interest in the European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. textile fibers subsidiary Nylstar, equally owned with Snia. This transaction should be finalized See finalization. in the coming months. In addition, progress is being made in finding a long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. solution for the pharmaceuticals business. --A major step forward in the reduction of greenhouse gas greenhouse gas n. Any of the atmospheric gases that contribute to the greenhouse effect. greenhouse gas emissions In the third quarter, two projects launched under the Kyoto Kyoto (kyō`tō), city (1990 pop. 1,461,140), capital of Kyoto prefecture, S Honshu, Japan, on the Kamo River. Yodo is its port. Kyoto is one of Japan's largest cities and an important cultural and spiritual center. Protocol's Clean Development Mechanism to reduce greenhouse gas emissions at the Onsan (South Korea) and Paulinia (Brazil) plants were approved by those countries' governments. These decisive steps in the approval process have allowed the Group to file these two projects with the United Nations Framework Convention on Climate Change, which is responsible for granting final approval and issuing Carbon Emissions Receipts (CER Cer goddess of violent death. [Gk. Myth.: Kravitz, 75] See : Death CER - Canonical Encoding Rules ). The approval of these projects would allow Rhodia to trade on the emissions credit market 11 to 13 million tonnes of CERs per year, starting in 2007.
(a) Excluding services and other revenues
(b) Before restructuring costs, amortizations and other gains and
losses
(c) Defined as "net cash provided by operating activities" minus
"additions to property-plant and equipment" and minus "other
capital investments"
--Outlook Rhodia confirms its 2006 objectives, under IFRS IFRS International Financial Reporting Standard(s) IFRS Inter Frame Relay Service IFRS Indiana Facilities Registry System :
-- A recurring EBITDA margin of at least 13%,
-- A return to profit in 2006,
-- A ratio of consolidated net debt to EBITDA of less than
3.5.
This press release and a detailed presentation of the third-quarter results will be available at as of 7:00 am. www.rhodia.com Rhodia is a global specialty chemicals A Specialty chemical is a chemical produced for a specialized use. They are produced in lower volume than bulk chemicals, of which petrochemicals, made from oil feedstocks, are the most common. However, both are produced in a chemical plant. company recognized for its strong technology positions in applications chemistry, specialty materials & services and fine chemicals. Partnering with major players in the automotive, electronics, fibers, pharmaceuticals, agrochemicals, consumer care, tires and paints & coatings markets, Rhodia offers tailor-made tai·lor-made adj. 1. Made by a tailor. 2. Perfectly fitted to a condition, preference, or purpose; made or as if made to order: tailor-made renovations. n. solutions combining original molecules and technologies to respond to customers' needs. Rhodia subscribes to the principles of Sustainable Development Sustainable development is a socio-ecological process characterized by the fulfilment of human needs while maintaining the quality of the natural environment indefinitely. The linkage between environment and development was globally recognized in 1980, when the International Union communicating its commitments and performance openly with stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. . Rhodia generated net sales of 5.3 billion euros in 2004 and employs around 20,000 people worldwide. Rhodia is listed on the Paris and New York stock exchanges New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. . Cautionary Note Regarding Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Certain of the statements contained in this press release that are not historical facts, are statements of future expectations and other forward-looking statements. These statements are based on our management's current views and assumptions and involve known and unknown risks and uncertainties that could cause our actual results, performance or events to differ materially from those anticipated by such statements. Factors that could cause such differences in our actual results include: --changes in the competitive and regulatory framework in which we operate, in particular increased competition in the specialty chemicals industry; --changes in raw material prices, in particular the price of oil and oil derivatives derivatives In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. ; --changes in interest rates and currency exchange rates in currencies other than the euro, principally in U.S. dollars, Brazilian reals The real (IPA: [xe'aw] or [ʁe'aɫ], symbol: R$, ISO 4217 code: BRL, plural: reais) is the currency of Brazil. It is also the name of the earliest Brazilian currency (see from the Colonial period to 1942. and U.S. dollar-influenced currencies; --our ability to successfully conclude divestitures and restructuring transactions on a timely basis and terms that are commercially acceptable; --our ability to introduce new products and to continue to develop our production process; --customers and market concentration; --risks and uncertainties attendant ATTENDANT. One who owes a duty or service to another, or in some sort depends upon him. Termes de la Ley, h.t. As to attendant terms, see Powell on Morts. Index, tit. Attendant term; Park on Dower, c. 1 7. to doing business in numerous countries that may be exposed to, or may have recently experienced, economic or governmental instability instability /in·sta·bil·i·ty/ (-stah-bil´i-te) lack of steadiness or stability. detrusor instability ; --changes in economic or technological trends; --potential environmental claims, costs, liabilities or other obligations; --If we are unsuccessful in obtaining tradable credits (CDM 1. CDM - Content Data Model 2. CDM - Code Division Multiplexing certificates) under the Clean Development Mechanism as established by the Kyoto Protocol Kyoto Protocol: see global warming. ; we note that the CDM processes and markets are new and are subject to risks, some of which may not yet be known; --And general competitive and market factors on a global, regional and/or national basis. Additional factors that might cause our future actual results to differ materially from our recent results or those projected in the forward-looking statements are set forth in "Item 3. Key Information--Risk Factors" included in our Form 20-F filed with the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Securities and Exchange Commission (SEC) on May 5, 2005, as updated in our submissions to the SEC from time to time. We assume no obligation to update the forward-looking statements or such risk factors.
3rd Quarter, 2005
CONSOLIDATED INCOME STATEMENT
-----------------------------
(IFRS)
-------------------------------------- ------ -------- ------ --------
(Million Euros) Q3 YTD Q3 YTD
2004 30/09/04 2005 30/09/05
-------------------------------------- ------ -------- ------ --------
-------------------------------------- ------ -------- ------ --------
SALES 1,213 3,570 1,238 3,831
-------------------------------------- ------ -------- ------ --------
Services & Other Revenues 87 325 85 330
-------------------------------------- ------ -------- ------ --------
-------------------------------------- ------ -------- ------ --------
EBITDA (recurring) 94 344 104 410
-------------------------------------- ------ -------- ------ --------
-------------------------------------- ------ -------- ------ --------
Restructuring Costs excluding
depreciation -23 -96 -16 -44
-------------------------------------- ------ -------- ------ --------
-------------------------------------- ------ -------- ------ --------
Other operating income and expenses 0 1 4 -12
-------------------------------------- ------ -------- ------ --------
-------------------------------------- ------ -------- ------ --------
Operating Income -32 -45 2 -12
-------------------------------------- ------ -------- ------ --------
-------------------------------------- ------ -------- ------ --------
Net Financial Expenses -41 213 -78 -289
-------------------------------------- ------ -------- ------ --------
-------------------------------------- ------ -------- ------ --------
Income Tax -21 -60 -4 -41
-------------------------------------- ------ -------- ------ --------
-------------------------------------- ------ -------- ------ --------
Equity earnings in affiliates 1 -1
-------------------------------------- ------ -------- ------ --------
-------------------------------------- ------ -------- ------ --------
Discontinued operations 53 244 -39 -49
-------------------------------------- ------ -------- ------ --------
-------------------------------------- ------ -------- ------ --------
Minority Interests -5 -7 -1
-------------------------------------- ------ -------- ------ --------
-------------------------------------- ------ -------- ------ --------
Net Income -45 -75 -122 -391
-------------------------------------- ------ -------- ------ --------
-------------------------------------- ------ -------- ------ --------
EPS (euro)(a) -0.14 -0.20 -0.19 -0.62
-------------------------------------- ------ -------- ------ --------
(a) calculated on a 314,776,294 shares basis as of the Sept. 30, 2004
and 627,582,158 shares as of the Sept. 30, 2005
SIMPLIFIED CONSOLIDATED BALANCE SHEET
-------------------------------------
(IFRS)
------------- ------------
31 June 05 30 Sept. 05
------------- ------------
(Million Euros)
------------------------------------------- ------------- ------------
Long term Assets 2,923 2,856
------------------------------------------- ------------- ------------
------------------------------------------- ------------- ------------
Net Current Assets 830 644
------------------------------------------- ------------- ------------
------------------------------------------- ------------- ------------
Total Net Assets 3,753 3,500
------------------------------------------- ------------- ------------
------------------------------------------- ------------- ------------
Shareholders' Equity(a) -685 -780
------------------------------------------- ------------- ------------
------------------------------------------- ------------- ------------
Current & Long Term Liabilities 1,792 1,747
------------------------------------------- ------------- ------------
------------------------------------------- ------------- ------------
Consolidated Net Debt 2,646 2,533
------------------------------------------- ------------- ------------
------------------------------------------- ------------- ------------
Total Net Liabilities 3,753 3,500
------------------------------------------- ------------- ------------
(a) Minority Interests included
(Million Euros) Q3 Q3
2004 Q3 2004 2005 %
--------------------------------- ------ ----------- ------ ----------
Restated(a)
---------------------------------
RHODIA (consolidated) (A) (B) (B)/(A)-1
--------------------------------- ------ ----------- ------ ----------
Sales 1,213 1,249 1,238 -0.9 %
--------------------------------- ------ ----------- ------ ----------
Services & other revenues 87 87 85
--------------------------------- ------ ----------- ------ ----------
EBITDA (recurring) 94 92 104 13.1 %
--------------------------------- ------ ----------- ------ ----------
EBITDA margin on Sales 7.7 % 7.4 % 8.4 %
--------------------------------- ------ ----------- ------ ----------
EBIT -32 -32 2
--------------------------------- ------ ----------- ------ ----------
---------------------------------
NOVECARE
--------------------------------- ------ ----------- ------ ----------
Sales 230 222 226 1.5 %
--------------------------------- ------ ----------- ------ ----------
EBITDA (recurring) 23 22 -5.8 %
--------------------------------- ------ ----------- ------ ----------
EBITDA margin on Sales 10.2 % 9.5 %
--------------------------------- ------ ----------- ------ ----------
---------------------------------
SILCEA
--------------------------------- ------ ----------- ------ ----------
Sales 182 182 204 11.8 %
--------------------------------- ------ ----------- ------ ----------
EBITDA (recurring) 14 24 73.7 %
--------------------------------- ------ ----------- ------ ----------
EBITDA margin on Sales 7.5 % 11.3 %
--------------------------------- ------ ----------- ------ ----------
---------------------------------
COATIS
--------------------------------- ------ ----------- ------ ----------
Sales 123 137 137 0.0 %
--------------------------------- ------ ----------- ------ ----------
EBITDA (recurring) -5 -3 -42.4 %
--------------------------------- ------ ----------- ------ ----------
EBITDA margin on Sales -3.8 % -2.2 %
--------------------------------- ------ ----------- ------ ----------
---------------------------------
POLYAMIDE
--------------------------------- ------ ----------- ------ ----------
Sales 400 435 408 -6.2 %
--------------------------------- ------ ----------- ------ ----------
EBITDA (recurring) 45 46 1.6 %
--------------------------------- ------ ----------- ------ ----------
EBITDA margin on Sales 10.4 % 11.3 %
--------------------------------- ------ ----------- ------ ----------
---------------------------------
ACETOW
--------------------------------- ------ ----------- ------ ----------
Sales 104 110 104 -5.9 %
--------------------------------- ------ ----------- ------ ----------
EBITDA (recurring) 27 26 -4.7 %
--------------------------------- ------ ----------- ------ ----------
EBITDA margin on Sales 24.6 % 24.9 %
--------------------------------- ------ ----------- ------ ----------
(a) Restated : same perimeter and exchange rate (conversion)
ECO SERVICES
--------------------------------- ------ ----------- ------ ----------
Sales 54 54 56 2.7 %
--------------------------------- ------ ----------- ------ ----------
EBITDA (recurring) 17 18 3.1 %
--------------------------------- ------ ----------- ------ ----------
EBITDA margin on Sales 31.6 % 31.7 %
--------------------------------- ------ ----------- ------ ----------
---------------------------------
ORGANICS
--------------------------------- ------ ----------- ------ ----------
Sales 84 85 78 -8.6 %
--------------------------------- ------ ----------- ------ ----------
EBITDA (recurring) -1 5 -495.8 %
--------------------------------- ------ ----------- ------ ----------
EBITDA margin on Sales -1.5 % 6.3 %
--------------------------------- ------ ----------- ------ ----------
---------------------------------
RPS
--------------------------------- ------ ----------- ------ ----------
Sales 52 52 52 0.5 %
--------------------------------- ------ ----------- ------ ----------
EBITDA (recurring) -7 -8 16.1 %
--------------------------------- ------ ----------- ------ ----------
EBITDA margin on Sales -12.6 % -14.5 %
--------------------------------- ------ ----------- ------ ----------
---------------------------------
CORPORATE & DIVERS
--------------------------------- ------ ----------- ------ ----------
Autres chiffres d'affaires net
des eliminations des chiffres
d'affaires inter-entreprises -17 -27 -25 -10.8 %
--------------------------------- ------ ----------- ------ ----------
EBITDA (recurring) -21 -26 20.4 %
--------------------------------- ------ ----------- ------ ----------
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