Rohm & Haas sales slow in fourth quarter
The chemicals producer Rohm & Haas has said it expects sales to be lower than it anticipated in the fourth quarter, following a marked slowdown in its higher value business in December. Nevertheless, sales are likely to be 4% to 5% up on the year before.
"While our year-over-year sales comparisons are favourable, we are experiencing the impact of some weakening in higher value businesses, such as Coatings, Plastics Additives, and Electronics Materials," said Raj Gupta, chairman and CEO. "In the first half of the quarter, we were tracking along expectations, but results in late November and December appear to be impacted by inventory reductions by some of our customers and slowing in some end markets."
Third party sales in Performance Chemicals are expected to be relatively flat on a year-over- year comparison. Fourth quarter earnings from continuing operations, excluding unusual items, are expected to be in the range of $.21 to $.24 per share, as compared to earnings of $.28 per share the comparable 2001 period, the company says.
"We are clearly disappointed by the fourth quarter earnings performance, largely driven by weakening demand towards the end of the year, poorer sales mix and one-time costs," said Gupta. "However, the company will report full year 2002 operating earnings more than 25 percent higher than the previous year, and free cash flow, after dividend, in excess of $350 million."
Rohm and Haas Company will issue its fourth quarter and full-year 2002 earnings results on Tuesday, February 4, 2003 before the opening of the New York Stock Exchange.
