Date: Thu, 20 Nov 1997 20:27:11 GMT Server: NCSA/1.5.1 Last-modified: Fri, 17 Oct 1997 18:01:32 GMT Content-type: text/html Content-length: 57630 ROHM AND HAAS REPORTS THIRD QUARTER EARNINGS '97

News Release

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ROHM AND HAAS REPORTS
RECORD THIRD QUARTER EARNINGS

Philadelphia, PA, October 16, 1997 -- Rohm and Haas Company (NYSE:ROH) reported record sales and earnings for the third quarter of 1997. Chairman J. Lawrence Wilson says the performance reflects strong ongoing demand for key segments of the company's acrylic portfolio of products, the fast-paced growth of its electronic chemicals business and continued gains in productivity and operational excellence.

Earnings for the third quarter of 1997 were $89 million, compared with $85 million for the same period a year ago. Earnings per common share were $1.45 an 11 percent increase over the $1.31 reported for the third quarter of 1996. The per-share increase includes the repurchase of 4.5 percent of the company's common shares since the end of September 1996.

Ongoing demand for Rohm and Haas products worldwide drove unit volume up 5 percent. "This volume growth is all the more notable because it was achieved in comparison with an extremely strong third quarter in 1996," said Wilson. Volume was up in every geographic region, with Latin America reporting growth at double-digit rates for the third quarter of 1997.

The company's largest business, Polymers and Resins, reported a 7 percent increase in worldwide volume. Demand for water-based, acrylic technology in specialty applications, such as adhesives, continues to grow, as does the need for high-technology polymers used to enhance the performance of paints and paper coatings.

Electronic Chemicals, the fastest-growing Rohm and Haas business, recorded a 16 percent increase in demand for the third quarter of 1997. Demand remained strong throughout the summer for products used to make photoresists and printed wiring boards for the semiconductor and electronics industries. The earnings increase for the Performance Chemicals group, which includes Electronic Chemicals, was helped by the contributions made by Rodel, Inc. Rohm and Haas purchased a 25 percent interest in Rodel, a Delaware-based electronic chemicals affiliate, in June.

Weaker foreign currencies continued to be a factor in the company's performance, as it has throughout 1997. An 11 percent decline in the overall value of European currencies and an 8 percent decline in the yen limited the company's overall sales growth to just 1 percent for the third quarter. However, internal cost control efforts and plants running smoothly at high production levels helped overcome currency impacts of about $.17 per share and allowed the company to report higher earnings for the quarter.

For the first nine months of the year, Rohm and Haas reported sales of $3,049 million, a 1 percent increase over the $3,017 million reported in 1996. Overall volume was up 8 percent. Earnings per common share were $4.92, an increase of 15 percent over the $4.28 reported for the first nine months of last year.

Commenting on the outlook for the fourth quarter, Wilson said, "We would expect to see another good earnings increase for the last three months of the year, and for as long as world economies and currencies remain stable."

He concluded, "We will continue to leverage our strengths in acrylic technology and electronic chemistry to make new products for growing markets and will deliver those products to customers in the most efficient manner possible. The fact that Rohm and Haas has been able to report increased volume and earnings in spite of an adverse currency situation throughout 1997 is clear evidence that we have a strong product portfolio, good positions in world markets, and the right strategies in place to provide a good return for our shareholders year after year."

# # #

Rohm and Haas Company
and Subsidiaries
STATEMENTS OF CONSOLIDATED EARNINGS


(in millions of dollars, except per-share amounts)

Quarter Ended
September 30,

Nine Months Ended
September 30,

Percent

Percent

1997

1996

Change

1997

1996

Change

Net sales

$

974

$

969 

$

3,049

$

3,017 

Cost of goods sold

632


622 



1,945


1,944 



Gross profit

342


347 


( 1)


1,104


1,073 



Selling and administrative expense

151

156 

( 3)

467

466 

Research and development expense

50

44 

14 

145

138 

Interest expense

9

12 

(25)

30

29 

Share of affiliate net earnings (losses)

4

(1)

--

10

(9)

--

Other expense, net

2



(33)


8



33 


  Earnings before
  income taxes

134

131 

464

425 

Income taxes

43


44 


( 2)


152


137 


11 


Net earnings

$

91


$

87 



$

312


$

288 



Net earnings applicable to common shareholders

$

89


$

85 



$

306


$

282 



Net earnings per common share (in dollars)

$

1.45


$

1.31


11 


$

4.92


$

4.28


15 


Average common shares outstanding (000's)

61,562


64,718


( 5)


62,219


65,930


( 6)


Capital Spending

56

65

172

218

Depreciation Expense

71

67

206

192


PHYSICAL VOLUME CHANGE

Current Quarter Relative to
Year-Earlier Quarter

First Nine Months of Current Year
Relative to First Nine Months of Prior Year

BUSINESS GROUP

Percent
Change

BUSINESS GROUP

Percent
Change

Polymers, Resins and
Monomers

Polymers, Resins and Monomers

Performance Chemicals

Performance Chemicals

Plastics

(6)

Plastics

Agricultural Chemicals

(2)


Agricultural Chemicals

(2)


WORLDWIDE


 


WORLDWIDE


 


CUSTOMER LOCATION

Percent
Change

CUSTOMER LOCATION

Percent
Change

North America

North America

Europe

Europe

Asia-Pacific

Asia-Pacific

Latin America

18 


Latin America

13 


WORLDWIDE

5  
 


WORLDWIDE

8  
 



Rohm and Haas Company
and Subsidiaries

SALES BY BUSINESS GROUP
AND CUSTOMER LOCATION

Quarter Ended

Nine Months Ended

September 30,

September 30

1997

1996

1997

1996

(millions of dollars)

BUSINESS GROUP

Polymers, Resins and Monomers

$

526

$

513

$

1,594

$

1,545

Performance Chemicals

196

185

566

561

Plastics

165

179

522

525

Agricultural Chemicals

  87


92


367


386


  Total

$

974


$

969


$

3,049


$

3,017


CUSTOMER LOCATION

North America

$

543

$

534

$

1,692

$

1,622

Europe

215

223

739

778

Asia-Pacific

142

144

413

429

Latin America

74


68


205


188


  Total

$

974


$

969


$

3,049


$

3,017


NET EARNINGS BY BUSINESS
GROUP AND CUSTOMER LOCATION

Quarter Ended
September 30,

Nine Months Ended
September 30,

1997

1996

1997

1996

(millions of dollars)

BUSINESS GROUP

Polymers, Resins and Monomers

$

69

$

72

$

211

$

180

Performance Chemicals

24

20

67

64

Plastics

17

14

49

41

Agricultural Chemicals

(2)

2

35

42

Corporate

(17)


(21)


(50)


(39)


  Total

$

91


$

87


$

312


$

288


CUSTOMER LOCATION

North America

$

70

$

68

$

224

$

181

Europe

17

18

72

81

Asia-Pacific

12

14

40

42

Latin America

9

8

26

23

Corporate

(17)


(21)


(50)


(39)


  Total

$

91


$

87


$

312


$

288



Corporate includes non-operating items such as interest income and expense, corporate governance costs and the corporate exploratory research.



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