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Rohm and Haas Company Provides Earnings Outlook for 2007 and Full-Year 2008

Published on 2007-11-30. Author : SpecialChem

Philadelphia -- Rohm and Haas Company has updated its expected full-year 2007 business performance and provided outlook for full-year 2008. Overall, the company expects full year 2007 sales of approximately $8.8 billion, and earnings per share from continuing operations in the $3.25 to $3.30 range, excluding approximately $0.29 per share in restructuring and asset impairment costs, and the one-time non cash pension charge announced in the third quarter of 2007. Consequently, fourth quarter 2007 earnings from continuing operations should be in the range of $0.75- $0.80 per share.

The company continues to see strong sales growth in the fourth quarter of approximately 9 to 10 percent over the prior year period, driven by solid sales performance in Electronic Materials, Salt, and the non-U.S. portion of Specialty Materials. The U.S. market for many of the Specialty Materials products remains weak, impacted by the soft building and construction markets.

While sales growth in the quarter continued at a robust pace, earnings will be adversely impacted by the continued run-up in raw materials, which have increased $60 million over the same period in 2006. The company has initiated a new round of price increases to recover these higher costs, and expects to capture approximately $10 million of the run-up in the fourth quarter. The company expects to have pricing in place to cover approximately 80 percent of the raw material escalation by the beginning of the first quarter of 2008.

In outlining key assumptions for the company in 2008, Raj L. Gupta, chairman, president and chief executive officer, noted the expectations for robust growth in Electronic Materials, strong chemicals growth outside the United States where building and construction markets are forecasted to remain weak, and success with the implementation of pricing initiatives to offset higher raw material costs. For the full-year 2008, the company expects sales approaching $10 billion, with earnings per share from continuing operations in the $3.80 to $4.00 range. "Our 2008 outlook is positive," notes Gupta, "and reflects solid growth in our key businesses and markets outside the United States, the positive impact of our share buy-back program, a relentless focus on operating excellence and cost controls, and the absence of significant one-time costs incurred in 2007."

Rohm and Haas Company will provide further comments on its 2007 and 2008 outlook, as well as a comprehensive update on its Vision 2010 strategic plan at its Investor Day on Wednesday, November 28, 2007 at 1:30 p.m., in New York City.

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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