Engelhard expects to beat analysts’ Q1 expectations

21 March 2006 16:29  [Source: ICIS news]

HOUSTON (ICIS news)--Engelhard said on Tuesday it will beat analysts' expectations for its first quarter earnings by 10-19%.

Analysts on average expected earnings per share (EPS) of about 48 cents (Euro0.40). The company said it expects to report first-quarter EPS in the range of 47-51 cents, which includes about 4 cents of expenses and 2 cents of share dilution due to the impact of an unsolicited BASF tender offer.

Strong performances in its technology segments, material services and ventures group will enable the company to beat expectations, Engelhard said. The company is scheduled to report first-quarter earnings on 27 April.

“We’re pretty pleased with our operating performance and we’ve forecast a very strong 2006,” said Ted Lowen, Engelhard’s spokesperson. “So far it looks like that.”

In January, German chemical giant BASF made an unsolicited offer to buy Engelhard, a US specialty chemical maker. BASF has extended its offer to 14 April and the two companies have entered into a confidentiality agreement that will give BASF a chance to inspect Engelhard’s books.

Lowen said there were no new developments in the situation, but reiterated Engelhard’s position that the BASF’s initial offer was inadequate.

“The message here is that 37 cents/share was unacceptable in January and it’s unacceptable now,” Lowen said.

By: Joseph Lohan
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