UPDATE 2-Rhodia sees significant core earnings improvement

* Sees 2010 recurring EBITDA 35 pct above the 2009 level

* Aims for fixed cost savings of 130 mln euros

* Q4 recurring EBITDA rises to 200 mln euros

* Resumes dividend payment, proposes 0.25 euros a share

* Shares rise as much as 8.2 pct

(Adds CEO comments from conference call, analyst, detail)

By Caroline Jacobs and Matthias Blamont

PARIS, Feb 24 (Reuters) - French chemicals group Rhodia SA RHA.PA aims to further improve core earnings this year, after a fourth-quarter recovery helped by emerging markets which marked the group's durability in a steep sector downturn.

Rhodia said on Wednesday it would resume paying a dividend and expects recurring EBITDA this year to be at least 35 percent higher than in 2009, adding it aims to keep fixed costs in check to save 130 million in 2010 against 2008 levels.

"The fourth quarter is excellent and the 2010 outlook is inviting," CM-CIC Securities said in a research note, keeping a "buy" rating on the stock. "The exposure to emerging markets and operational discipline are fully (in) the company's favour."

Fourth-quarter recurring earnings before interest, tax, depreciation and amortisation rose to 200 million euros, against the company's own forecast of above 160 million.

Rhodia's outlook and earnings recovery contrast with those of Dutch rival DSM (DSMN.AS), which did not specify a target and posted an unexpected quarterly net loss, while last week Swiss rival Clariant (CLN.VX) announced more jobs cuts. [ID:nLDE61N07W] [ID:nLDE61A1CY]

"There is a very strong dynamic in emerging economies like in Rhodia's main markets Brazil and China," Chief Executive Jean-Pierre Clamadieu said at a conference call.

"There is a good dynamic in Europe so far but there are uncertainties for the second half."

SHARES UP

Clamadieu said European car scrappage schemes that have boosted auto demand were helping the group, which derives about a fifth of its sales from the automotive sector. Nevertheless, uncertainties surrounded the ending of incentives this year, he said. [ID:nLDE61E27T]

Shares in Rhodia, which makes products that end up in products as diverse as truck tyres, mobile phones and skis, rose as much as 8.2 percent and were up 7.1 percent at 14.03 euros by 0823 GMT, beating a little-changed chemical index .SX4P.

For growth, Rhodia is counting on emerging markets where demand has returned to pre-crisis levels. Latin America and Asia represented 45 percent of Rhodia's 2009 sales.

The focus for the group, which in recent years has been reaping the fruits of a tough restructuring, would remain on operational discipline and cash generation to take into account uncertainties and climbing raw material and energy prices.

It made a record free cashflow of 355 million euros in 2009, while net debt at 1 billion euros allowed Rhodia to look at bolt-on acquisitions, Clamadieu said.

Rhodia swung to a fourth-quarter net profit of 28 million euros, while sales fell 5.2 percent like-for-like to 1.08 billion.

The figures compared with a Vara Research consensus, published by Rhodia on its Website, of net profit of 44 million euros, recurring EBITDA of 178 million and sales of 1.06 billion. Independent Vara Research polled 11 analysts. (Editing by Marcel Michelson and David Holmes)