Rhodia (Courbevoie, France) has announced that it expects its recurring EBITA " to be about 10% below the level achieved in 2007." The revelation comes in response to a drop in end-market demand, driven by a worsening global economy. As a result, lower raw material and energy costs will not have as significant an effect on the bottom line as anticipated.
Chairman and CEO Jean-Pierre Clamadieu added, “Over the last few weeks we have witnessed short-notice cancellation of orders, coming even from geographical areas that had shown satisfactory dynamics until recently. Addressing this very challenging macroeconomic environment, the group has reinforced the implementation of the action plans announced in early November. These measures include the temporary closure or slowdown of some of our production facilities, primarily operating in the Polyamide, Silcea and Novecare enterprises. Furthermore, we remain focused on stringent cash management in order to secure a positive free cash flow generation for the year.”