US Rohm and Haas to rearrange portfolio by 2010

28 November 2007 21:10  [Source: ICIS news]

HOUSTON (ICIS news)--US specialty-chemicals firm Rohm and Haas plans to rearrange its portfolio of products so that by 2010, 85% of the its net earnings will come from from its paint and coatings, electronic materials and niche segments, the company said on Wednesday.

In 2006, those three segments generated 64% of the company's net earnings, said Rohm and Haas Chief Financial Officer Jacques Croisetiere at the company's investor day event.

Rohm and Haas will achieve its goals through acquisitions and divestments, the company said.

In addition, Rohm and Haas plans to increase its presence in eastern Europe, Asia and other parts of the world with fast-growing economies.

By 2010, the company will receive 35% of its sales from the Asia-Pacific region , up from 20% in 2006. The company will receive 35% of its sales from North America in 2010, down from 51% in 2006.

It expects overall sales to reach $11bn-12bn (€7.4bn-8.0bn) in 2010, up from $8.2bn in 2006, the company said. Earnings before interest, taxes, depreciation and amortisation (EBITDA) should reach $2.3bn-2.5bn in 2010, up from $1.6bn in 2006.

Regarding the company's short-term outlook, it expects global GDP to grow 3.0-3.5% in 2008, equal to 2007.

Rohm and Haas said it expects western Europe's GDP to grow by 2.2%, the US should grow by 2.0%, and Asia, Latin America and eastern Europe should grow by roughly 4%.

The company said it expects no recovery in 2008 in the building and construction markets in the US. As such, paint volumes should drop by 3-5%, the company said.

Rohm and Haas said expects the average price of oil to be $85/bbl, causing raw material costs to rise by at least $200m.

($1.00 = €0.67)

By: Al Greenwood
+1 713 525 2653

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