31 January 2005

Rohm & Haas solid performance

Rohm and Haas Company reports 4Q 2004 sales of $1,864 m a 13% increase over the same period in 2003, with higher selling prices accounting for a 6% increase, higher volume and favorable mix reflecting a 4% increase, and favorable currencies adding 3% on the revenue line.

Earnings for the quarter were $128 m, or 57c/share, including $11m after-tax, or 5c/share in restructuring charges, as well as a 1c/share gain from discontinued operations related to the sale of the agricultural chemicals business in 2001.

"We had a solid performance in the fourth quarter, with the highest quarterly sales we have recorded in the company's history," said chairman and CEO Raj Gupta, "Of particular note was the solid increase in selling prices, which have been essential to temper the continuing pressure from higher raw material and energy costs. However, selling price increases still lag these continually rising raw material costs, and as a result, our gross profit margins remain depressed."

Gupta noted that the Electronic Materials business had modest year-on-year growth, on signs of sequential slowing in this market. In addition, the quarter's earnings also benefited from a lower effective tax rate.

Electronic Materials sales of $310m were up 4% over a very strong period last year, driven by the continued growth in the advanced technology product lines, particularly in the Asia Pacific region.

This business experienced a general market slowdown during the quarter, as the favorable effect of expected holiday buying did not materialise. Circuit Board Technology sales were down 4% over the same period in 2003, reflecting weakness in the North American market, while Europe and Asia- Pacific experienced higher demand.

Packaging and Finishing Technologies reported sales 7% higher than the same period a year ago, with strong increases in the North American and European regions, as this business continued to outperform the market.

Semiconductor Technologies reported 8% higher sales than the same period in 2003, driven by strong growth in the advanced technology product lines.

4Q 2004 earnings for Electronic Materials of $37m were up 28% over the same period in 2003, primarily driven by higher demand, again particularly in the advanced technology product lines.