Rohm and Haas results

Rohm and Haas Company have reported fourth quarter sales of $1.435 billion, a 7% increase over the same period in 2001, reflecting solid improvement in the coatings, electronic materials, salt and monomers businesses. The company reported a net loss of $38 million, or $.17 per share for the fourth quarter of 2002. Fourth quarter 2001 pro forma earnings were $57 million or $.26 per share, adjusted to exclude amortisation of certain intangibles in accordance with Statement of Financial Accounting Standards (SFAS) No. 142. Performance chemicals fourth quarter earnings of $5 million are down from $13 million for the same period in 2002, due to increased raw material costs, higher research costs and one-time costs related to manufacturing. The company have also reported full-year 2002 sales of $5.7 billion, relatively flat with 2001. Sales growth in many key businesses was offset by the impact of exited businesses. Net loss as reported for 2002 was $570 million, compared with earnings of $395 million in 2001. Full-year 2002 earnings from continuing operations, excluding unusual items, were $339 million, a 26% increase over earnings of $268 million for the full-year 2001. 'The first half of 2002 reflected substantial momentum in earnings as the businesses began to recover from the sluggish previous year and we realised benefits of lower raw materials and energy costs, as well as the leverage from a lower cost structure', chief executive Raj Gupta noted. 'While the sales momentum gained through the year, the earnings momentum slowed in the second half, as raw materials increased and the economy sputtered, particularly in the electronics market. 'During 2002, we lowered our cost structure with the successful completion of the $200 million profit improvement program launched in mid-2001; continued investing in research and development; made significant progress in implementing a global ERP system; and applied free cash flow of over $560 million to increase dividends, pay down debt, and finance two strategic bolt-on acquisitions. A number of the costs that impacted us in the fourth quarter are not expected to recur in 2003. We enter the year with the integration of our acquisitions behind us, and have the capacity to take full advantage of any improvements in the external environment.'