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Rohm and Haas Company Board Authorizes $2 Billion Share Repurchase Program, Including $1 Billion Accelerated Share Repurchase; Declares Quarterly Dividend

Published on 2007-07-19. Author : SpecialChem

Philadelphia, PA -- The Board of Directors of Rohm and Haas Company (NYSE: ROH) authorized the repurchase of up to $2 billion of its common stock.

The company plans to implement this new repurchase authorization in two stages:

  • Execute a $1 billion accelerated share repurchase (ASR) during the third quarter of 2007, which will be funded by the issuance of new debt. The company intends to execute the ASR following the completion of its existing $1 billion share repurchase program, which was authorized by the Board of Directors in December, 2004.
  • Utilize the remaining $1 billion over 2008-2010, with the timing of the purchases dependent on market conditions. These purchases will be funded from available cash.

"Today's Board actions demonstrate our commitment to leverage our financial strength to drive shareholder value, and underscore our confidence in the long-term potential for Rohm and Haas Company," commented Raj L. Gupta, chairman, president and chief executive officer. "The evolution of our capital structure is an important complement to our Vision 2010 strategic plan for accelerating value creation. Our strong portfolio, rapidly growing presence in emerging markets, leadership in innovation, operational excellence, and strong talent deployed throughout the enterprise, support this shift in capital structure to provide greater rewards for our shareholders."

Gupta noted that execution of the ASR and related financing is anticipated to increase the company's debt to total capital ratio to approximately 50 percent. Further, completion of the existing program and the execution of the ASR are anticipated to reduce shares outstanding to approximately 195 million shares by September 30, 2007 from 219 million at the end of 2006.

The Board also today declared a regular quarterly dividend of $0.37 per common share, payable on September 4, 2007 to shareholders of record at the close of business on August 10, 2007.

About Rohm and Haas Company

Rohm and Haas is a global leader in the creation and development of innovative technologies and solutions for the specialty materials industry. The company's technologies are found in a wide range of markets including: Building and Construction, Electronics, Industrial Process, Packaging and Paper, Transportation, Household and Personal Care, Water, Food and Retail and Pharma and Medical. Based in Philadelphia, Pa, the company generated annual sales of approximately $8.2 billion in 2006.

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 demand for products and services, sales and earnings forecasts, and actions that may be taken to improve financial performance, involve risks and uncertainties and are subject to change based on various factors, including the cost of raw materials, natural gas, and other energy sources, and the ability to achieve price increases to offset such cost increases, development of operational efficiencies, changes in foreign currencies, changes in interest rates, the continued timely development and acceptance of new products and services, the impact of competitive products and pricing, the impact of new accounting standards, assessments for asset impairments, 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 February 28, 2007.

Source: Rohm and Haas


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