Action chemical group Rhodia fell by more than 20%,

Action chemical group Rhodia fell by more than 20%, Thursday, February 28, on the Paris Bourse. Despite a doubling of profit to 129 million euros (62 million in 2006), despite a dividend payment for the first time in five years, despite an increase of 5.6% of turnover (5.08 billion ' euros), investors have punished 2008 outlook clouded by higher raw material prices and the continuing fall in the dollar.


By early morning, the title had lost 7%, analysts believed the results slightly below their expectations. But the unscrewing of title occurred when Jean-2008 in the company's ability to pass on a continuous increases in the price of energy and raw materials.

Until now, the repositioning of Rhodia market segments where the customer had no choice but to accept price increases had worked well. But Thursday, Mr. Clamadieu said that "a further significant increase in the price of raw materials and energy in the fourth quarter of 2007 would affect the start of the year 2008". He estimated the cost of this increase to 80 million euros in the first quarter of 2008 only after it had been 120 million euros "only" on the whole of 2007.

Although the order books are full of Rhodia, although the crisis subprimes savings away from a group BTP, the markets have punished mostly uncertainty