Rohm and Haas reports Q1 results
May 03, 2004
Rohm and Haas Company today reported first quarter sales of $1,832 million, a 14 percent increase over the same period in 2003, reflecting strong demand in most businesses, along with the favorable impact of currencies. Earnings of $114 million from continuing operations before cumulative effect of accounting change, or $.51 per share, were up 39 percent compared with earnings of $82 million, or $.37 per share, in the comparable period in 2003.
"We continue to see the benefits of an improving global economy, resulting in higher demand across most businesses," said Raj L. Gupta, chairman and chief executive officer. "The strong momentum in the electronics markets is very positive, the coatings markets, particularly architectural and functional coatings remain strong, and we are participating in the recovery in the industrial sector." Gupta noted that demand in the quarter was up as compared to the same period in 2003 for all business segments, with the exception of Salt, which was flat as compared to an equally strong quarter last year. "The strong demand across our businesses, as well as the favorable impact of currency, more than offset the impact of much higher raw materials, resulting in a favorable comparison for the quarter," said Gupta. He noted, however, that after-tax earnings margins remain below targets.
Sales in Electronic Materials of $302 million were up 19 percent over first quarter of 2003, reflecting higher demand across all business segments, with the largest growth occurring in the Asia-Pacific region. All three Electronic Materials businesses experienced strong growth in the quarter, driven by the advanced product lines. Earnings of $31 million were up 48 percent over the same period in 2003, attributable to the higher demand and cost efficiencies implemented in the past several years.