Growth Slowed At Rhone-Poulenc By Centeon Impact

French chemical company Rhone-Poulenc achieved net income of 674 millionFrench francs ($115.2 million) in the quarter ended March 31, an increase of 6.5% on the like, year-earlier period. The growth of net income was negatively impacted by the product recall implemented at the group's affiliate, Centeon (Marketletters passim). The firm said that excluding the Centeon impact, the increase in net income would have been nearly 30%.

Operating earnings on a comparable basis were just over 2 billion francs, up 18.8%, and earnings per share were 2.05 francs, up 4%. Before amortization of goodwill, EPS were 2.88 francs, a rise of 6.7%, and excluding Centeon, EPS growth would have been 27%. Sales for the quarter were 21.6 billion francs, with a 6.3% rise on a comparable basis.

In the pharmaceutical sector, which includes Rhone-Poulenc Rorer, and Pasteur Merieux Connaught, turnover grew 4.6% on a comparable basis, driven by strong sales of vaccines and new products. The sector's earnings from operating activities decreased 3.4%, but would have risen 28.3% if Centeon is excluded.