Rohm and Haas Q2 income falls 8%, sales up 17%

24 July 2008 14:38  [Source: ICIS news]

LONDON (ICIS news)--Rohm and Haas (R&H) reported an 8% drop in second quarter net earnings at $147m (€93m), down from $160m in the same period last year, the US specialties company said on Thursday.

 

R&H booked a 17% increase in second quarter sales to $2.57bn driven by the electronic materials segment and chemical businesses outside the US.

 

“We have made good progress against our Vision 2010 strategy for accelerating profitable growth through pricing actions and a realignment of our geographic footprint and support services, despite the challenge of an increasingly difficult economic and business environment,” said R&H CEO Raj Gupta.

 

By segment, the electronic materials business reported a 7% gain in pre-tax earnings to $101m driven by strong profit growth in electronic technologies, but offset by losses on display technologies.

 

The specialty materials business booked pre-tax earnings of $153m, down 14% from the year earlier period due to high raw material, energy and freight costs. Profits were also hit by deterioration in the US building and construction markets and moderating conditions in Western Europe.

 

Performance materials increased pre-tax earnings by 36% to $34m driven by increased demand for process chemicals and biocides. Higher selling prices and favourable currencies more than offset rising raw material, energy and freight costs, said R&H.

 

 “The external environment remains very uncertain and challenging. We are successfully navigating these challenges with proactive actions to deliver acceptable near-term results and are making necessary investments to stay on track with our Vision 2010 strategic plan,” said Gupta.

 

($1 = €0.64)

By: Mark Watts
+44 20 8652 3214

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