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Rohm and Haas Company Announces Price Increases due to Higher Raw Material and Energy Costs; Updates Third Quarter Earnings Outlook

Published on 2005-09-21. Author : SpecialChem

PHILADELPHIA, PA -- Rohm and Haas Company (NYSE:ROH) announced plans to quickly implement selling price increases to offset the impact of unprecedented raw material, feedstock, energy and freight-related cost increases in recent weeks.

“While Rohm and Haas Company does not have any operating facilities in the Gulf Coast area impacted by Hurricane Katrina, and we expect minimal supply disruptions as a result of the storm, the disaster is exacerbating the situation with regards to raw material and energy related costs,” said Raj L. Gupta, chairman, president and chief executive officer.

Gupta noted that the previously implemented pricing initiatives have been very effective, however the most recent increases in raw material and energy related costs, as well as those recently announced, require an immediate pricing response. The latest pricing initiatives are expected to recover these higher costs in the coming quarters. “The outlook for raw material and energy related costs remains challenging, and we expect costs to remain at extraordinarily high levels well into 2006,” said Gupta. “This will require a continued focus on pricing, as well as operating efficiencies, to maintain acceptable margins.”

The company also said that based on the current business outlook for the third quarter, it expects sales in the quarter to be approximately $1.9 billion, with earnings from continuing operations in the range of $0.67 to $0.70 per share. This outlook is consistent with the company’s full year 2005 guidance issued on July 21, 2005. Rohm and Haas Company’s third quarter results will be released on October 20, 2005.

About Rohm and Haas Company

Rohm and Haas is a Philadelphia-based specialty materials company which makes products for the personal care, grocery, home and construction markets, and the electronics industry. The company had annual sales of approximately $7.3 billion in 2004 with operations in 27 countries.

This release includes forward-looking statements. Actual results could vary materially, due to changes in current expectations. The forward-looking statements contained in this announcement concerning actions that may be taken to improve financial performance, involve risks and uncertainties and are subject to change based on various factors, including changes in foreign currencies, changes in interest rates, and the impact of tax and other legislation and regulation in the jurisdictions in which the company operates. Further information about these risks can be found in the company’s SEC 10-K filing of March 1, 2005.

Source: Rohm and Haas

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