Rohm & Haas issues outlook for Q3 - 8 to 10% higher sales

Rohm and Haas (NYSE: ROH) said that sales for the third quarter are expected to be 8 to 10 percent higher than the same period in 2002, driven by the favorable impact of currencies, acquisitions made in 2002, and selling price increases while demand is relatively flat, a result of the continuing sluggish economic environment, particularly in the industrial sectors.Earnings for the third quarter are expected to be in the range of $ 0.40 to $0.44 per share, as compared to third quarter 2002 earnings from continuing operations of $0.35 per share."We continue to see some improvement in the macro-economic environment," said Raj L. Gupta, chairman and chief executive officer. "However, the industrial sector remains weak, and this lack of a broad-based economic recovery is affecting our revenue growth." Sales in the Coatings business are expected to be up over 12 percent for the third quarter of 2003, compared with the same period a year ago. The Architectural and Functional Coatings business is seeing some recovery in demand from the poor painting season this past spring, although industrial demand remains weak. Powder Coatings demand continues to improve, particularly in Europe, while Automotive Coatings is being negatively impacted by the summer slowdown in automobile builds. Sales for Electronic Materials are expected to be slightly up over the third quarter 2002, as the business continues to experience slower than anticipated, but steady improvement. Demand in the Microelectronics and Electronic and Industrial Finishes businesses is running ahead of the same period last year, while demand in the Printed Wiring Board business remains soft. Adhesives and Sealants sales for the third quarter are expected to be up approximately 4 percent over the comparable period in 2002, with continued weakness in demand in both North America and Europe. Sales in Performance Chemicals for the third quarter are expected to be up approximately 10 percent over the same period in 2002. Demand in Plastics Additives continues to be uneven as customers carefully manage inventory, particularly in the PVC markets. The delayed recovery in industrial markets is impacting demand in Process Chemicals, while Consumer and Industrial Specialties is experiencing solid growth in biocides and polymers. Salt is experiencing demand similar to the third quarter of 2002, with sales for the quarter expected to be up approximately 6 percent over the comparable period a year ago. Monomers sales for the quarter are expected to be up over 20 percent from the third quarter of 2002 on stable demand, as the business continues to recover the run-up in raw material and energy costs.Raw material and energy costs for the company, particularly natural gas, have moderated from the peak levels in the second quarter of 2003, while selling prices are holding at levels similar to last quarter. These factors are having a favorable impact on margins. "Despite the tough economic environment, we continue to focus on new product introductions, achieving cost efficiencies, and managing pricing where our products and technologies have demonstrated value in the marketplace, in order to grow sales and improve operating margins," Gupta said. "While we see some slow but steady economic improvement in key consumer markets, a broad-based recovery in the industrial sectors has not yet materialized. As this occurs, we are well positioned to achieve significant improvement in operating margins."Rohm and Haas Company (NYSE:ROH) will release its third quarter 2003 results before the New York Stock Exchange opens on Wednesday, October 29, 2003. Copies of the release will be available on the news and investors sections of the company’s website, www.rohmhaas.com.The company will host a teleconference to review these results on Wednesday, October 29, at 11:00 AM EST. Interested parties are asked to dial in approximately 10 minutes before the call begins at the following numbers:U.S. Participants: 800-231-9012International Participants: +1 719-457-2617Live internet access to the call will be available (audio only) through the Investors section of the Company’s website: www.rohmhaas.com. A replay of the call will be available at 3:00PM EST, October 29, 2003 through 11:00 PM EST, November 4, 2003. The playback can be accessed by dialing 888-203-1112 (U.S.); 719-457-0820 (International). The passcode is 478233, followed by the # sign. A replay and transcript will also be available on the investors section of the company’s website: www.rohmhaas.com.Source: PCBnewsline