Rohm and Haas Reports First Quarter Earnings

Apr 23, 2001, 01:00 ET from Rohm and Haas Company

    PHILADELPHIA, April 23 /PRNewswire Interactive News Release/ -- Rohm and
 Haas Company (NYSE:   ROH) issued the following:
 
                                                           Quarter Ended
                                                            March 31st
                                       (in millions, except per-share amounts)
                                                       2001            2000
 
     Net Sales                                         $1,688         $1,765
     Net earnings per share, diluted:
       Before cumulative effect of acctg. change         $.29           $.56
       Cumulative effect of acctg. change               $(.01)            --
       Net earnings                                      $.28           $.56
 
     Net earnings, excluding non-recurring items:
       Net earnings per share                            $.29           $.61
       Cash earnings per share                           $.47           $.78
 
     Shares outstanding, in millions:
       diluted                                          221.0          221.0
 
 
     Rohm and Haas Company today reported first quarter earnings of
 $64 million, or $.29 per share before a one-cent charge related to the
 adoption of a new accounting standard for derivatives and hedging (SFAS 133).
 While this is significantly below the $.56 per share reported for the
 comparable period in 2000, it is squarely within the $.27 to $.29 per share
 range the company provided when it gave earnings guidance in March.  Net
 earnings, excluding the impact of non-recurring items, were $.29 per share in
 2001 and $.61 per share in 2000.
     Sales for the quarter were $1,688 million in 2001, down 4 percent from
 sales of $1,765 million for the same period in 2000.  Sales matched the
 year-ago period on a same business basis, excluding the effect of currency.
     Chairman and CEO Raj L. Gupta said the company's strong market positions,
 technology, geographic reach and internal cost control are enabling Rohm and
 Haas to perform reasonably well in a persistently difficult environment.
 "There is ample evidence that we are outperforming our competition in many of
 the markets we serve," he said.
 
     Business Discussion
     Performance Polymers sales were down 10 percent compared with year-ago
 levels, on a reported basis.  They were down 5 percent on a same-business
 basis.  Sequentially, sales were up more than 6 percent from the fourth
 quarter of 2000, reflecting seasonal patterns.  The Coatings business reported
 good growth during the painting season in Latin America and throughout most of
 the Asia-Pacific region.  Monomers again reported good growth to customers who
 make superabsorbent polymers.  Powder Coatings saw strength in Europe as the
 introduction of new products gained momentum there.  As expected, Specialty
 Polymers, Plastics Additives and Automotive Coatings continued to be most
 affected by the slowdown in the North American building, construction and
 automotive markets.  Gupta noted that Performance Polymers was able to hold
 the gap between raw material/energy costs and selling prices steady at about
 $40 million again during the first quarter.  The businesses obtained selling
 price increases that were sufficient to offset energy cost increases since the
 fourth quarter of 2000.
     Electronic Materials began 2001 with the same strong growth rates it
 reported for most of 2000, but saw significant slowing in demand from North
 American printed wiring board customers as the quarter progressed.  This rapid
 deterioration was offset by continued good growth for leading-edge products
 used to make high-end semiconductor chips.  Sales of deep UV photoresists and
 chemical mechanical planarization (CMP) products each grew 45-50 percent
 compared to the same period a year ago.  As a result, overall sales for
 Electronic Materials were up 8 percent on a same-business basis; up 32 percent
 as reported.  Earnings increased 18 percent on a same-business basis.  During
 the quarter, Rohm and Haas increased its ownership in CMP-producer Rodel to
 98 percent.
     Chemical Specialties sales were down 10 percent from the first quarter of
 2000, due primarily to softer Agricultural Chemicals sales.  Unfavorable
 weather conditions that delayed plantings in North America and increased
 competition in fungicides resulted in the lower sales.  Consumer and
 Industrial Specialties and Ion Exchange Resins both did well during the
 period.  On March 8th, Rohm and Haas announced it will sell its Agricultural
 Chemicals business to Dow AgroSciences LLC.  The U.S. Federal Trade Commission
 finished its Hart-Scott-Rodino review of the transaction, which is scheduled
 for closing in the second quarter of this year.
     The Salt business reported another excellent quarter for ice-control salt
 sales, along with good growth for food processing, industrial and consumer
 salt uses.  Gupta said that discussions have ended with US Salt Holdings LLC
 about a possible alliance involving the Morton Salt business.  "After
 extensive discussions, we could not come up with an arrangement that fit the
 strategic objectives of both companies," he said.
 
     Regional Comments
     A geographic look shows that reported sales were down 4 percent from
 year-ago levels in North America.  Sales were up 18 percent in Asia-Pacific,
 and up 7 percent in Latin America.  Sales in Europe were down 15 percent as
 reported; down just 2 percent, excluding the impact of divested businesses.
 
     Summary
     Gupta acknowledged that it's unlikely that external business conditions
 will change dramatically in the short term for the Performance Polymers
 businesses, but did say there may be indications that some of the headwinds
 they face may be lessening in severity.  "However, we are not waiting for
 external conditions to improve," said Gupta.  "Rather we are doing everything
 we can to improve our position in the marketplace.  This includes defensive
 strategies, such as cost control and inventory management, as well as
 proactive steps, such as technology investments and infrastructure
 improvements.  We will make whatever adjustments we need to bring capacity and
 related costs firmly in line with current market demand, and accelerate sales
 and earnings growth for Performance Polymers once external conditions turn in
 our favor."
     Gupta also addressed the decline in demand seen in Electronic Materials
 from the North American printed wiring board market.  "It's too soon to say if
 we are facing a temporary inventory correction that will last a few months, or
 a slightly more prolonged downturn of a few quarters," he said, "but here,
 too, we are taking our fate firmly in our own hands.  Speed and response are
 critical characteristics for success in the electronics market.  We will not
 hesitate to take whatever additional steps are needed to ensure that we keep
 the right growth trajectory for this successful Electronic Materials
 business."
     Rohm and Haas will discuss its financial performance in greater detail
 during an open teleconference/audio webcast on Tuesday, April 24th at
 10:00 a.m. EDT.  Interested parties can listen to the webcast through the
 "investors" portion of the company's website (www.rohmhaas.com), or by dialing
 in on 888-868-9083 for domestic callers, and 1-973-633-6740 for international
 participants.
     This release contains forward-looking statements.  Actual results could
 vary materially, due to changes in current expectations.  The forward-looking
 statements contained in this announcement concerning demand for products and
 services, sales and earnings growth, actions that may be taken to improve
 financial performance, involve risks and uncertainties, and are subject to
 change based on various factors, including the impact of changes in worldwide
 and national economies, the cost and availability of raw materials and natural
 gas, as well as other energy sources, and the ability to achieve price
 increases to offset such cost increases, development of operational
 efficiencies, changes in foreign currencies, changes in interest rates, the
 continued timely development and acceptance of new products and services, the
 impact of competitive products and pricing, and the impact of tax and other
 legislation and regulation in the jurisdictions in which the company operates.
 Further information about these risks can be found in the company's SEC 10-K
 filing of March 27, 2001.
     Rohm and Haas technology is found in paints and coatings, adhesives and
 sealants, household products, personal computers and electronic components,
 and construction materials. It also helps bring food to the table -- fruits
 and vegetables -- and salt, an essential ingredient for life. The company has
 annual sales of approximately $7 billion and employs 18,000. The company
 operates approximately 140 manufacturing and research sites in 27 countries
 around the world.
 
        Rohm and Haas Company
         and Subsidiaries
        Statements of Consolidated Earnings                         (Unaudited)
 
        (in millions of dollars, except per-share amounts)
 
                                                       Quarter Ended
                                                          March 31,
                                                                       Percent
                                                 2001         2000      Change
 
           Net sales                            $1,688       $1,765        (4)
           Cost of goods sold                    1,181        1,162         2
                Gross profit                       507          603       (16)
 
           Selling and administrative expense      246          261        (6)
           Research and development expense         63           59         7
           Interest expense                         56           62       (10)
           Amortization of goodwill and
            other intangibles                       39           38         3
           Share of affiliate net earnings           3            6       (50)
           Provision for restructuring               -           13         -
           Other income, net                         -           12         -
                Earnings before income taxes       106          188       (44)
           Income taxes                             42           65       (35)
 
           Earnings before cumulative
            effect of accounting change             64          123       (48)
 
           Cumulative effect of accounting
            change, net of income taxes              2            -         -
 
           Net earnings                            $62         $123       (50)
 
           Earnings per common share (in
            dollars):
 
           - Basic
               Before cumulative effect of
                accounting change                 $.29         $.56       (48)
               Cumulative effect of
                accounting change                 (.01)           -         -
               Net earnings                       $.28         $.56       (50)
 
           - Diluted
               Before cumulative effect of
                accounting change                 $.29         $.56       (48)
               Cumulative effect of
                accounting change                 (.01)           -         -
               Net earnings                       $.28         $.56       (50)
 
           Average common shares
            outstanding (millions):
                      - Basic                    220.0        219.2         -
                      - Diluted                  221.0        221.1         -
 
           Other Data:
           EBITDA (excluding non-recurring
            items)                                $311         $412
           Cash earnings per share (excl.
            non-recurring items) *                 .47          .78
           Capital spending                         96           72
           Depreciation expense                    110          106
 
     * - Earnings per share excluding the effect of after-tax amortization
 charges and asset write-up related depreciation expense, both arising from
 recent acquisitions.
 
 
        Rohm and Haas Company
         and Subsidiaries                                  (Unaudited)
 
         Sales by Business Segment and Region (a)
                                                         Quarter Ended
                                                           March 31,
                                                     2001              2000
                                                     (millions of dollars)
                Business Segment
                   Performance Polymers              $794              $882
                   Chemical Specialties               326               362
                   Electronic Materials               297               225
                   Salt                               271               296
 
                     Total                         $1,688            $1,765
 
                Region
                   North America                   $1,009            $1,054
                   Europe                             391               461
                   Asia-Pacific                       215               182
                   Latin America                       73                68
 
                     Total                         $1,688            $1,765
 
          Net Earnings by Business Segment (b)
 
                Business Segment
                   Performance Polymers               $32               $91
                   Chemical Specialties                36                36
                   Electronic Materials                26                22
                   Salt                                18                18
                   Corporate (c)                      (50)              (44)
 
                     Total                            $62              $123
 
         Earnings before interest, taxes,
          depreciation and amortization
          (EBITDA) by Business Segment (d)
 
                Business Segment
                   Performance Polymers              $125              $211
                   Chemical Specialties                78                99
                   Electronic Materials                62                46
                   Salt                                60                63
                   Corporate                          (14)               (7)
 
                     Total                           $311              $412
 
     (a) - 2000 sales have been restated to conform with EITF 00-10 "Accounting
 for Shipping and Handling Fees and Costs."
 
     (b) - Segment earnings reflect after-tax operating results, net of
 acquisition-related amortization of goodwill and other assets and provision
 for restructuring.  The Corporate segment in year 2001 includes the cumulative
 effect of the accounting change related to the adoption of SFAS No. 133,
 "Accounting for Derivative Instruments and Hedging Activities."
 
     (c) - Corporate includes non-operating items such as interest income and
 expense, corporate governance costs and corporate exploratory research.
 
     (d)- EBITDA, as calculated above, may not be comparable to EBITDA as
 reported by other companies.  It should not be considered as an alternative to
 net income as an indicator of operating performance in accordance with
 generally accepted accounting principles.  EBITDA excludes non-recurring items
 which in 2001 includes the cumulative effect of an accounting change.
 
 
        Rohm and Haas Company
         and Subsidiaries
        Consolidated
        Balance Sheets    (Unaudited)
 
        (Millions of dollars, except per-share amounts)
 
                                            March 31,   December 31,  March 31,
                                              2001         2000         2000
            Assets                        (Preliminary)
            Current assets:
              Cash and cash equivalents          $71          $92          $61
              Receivables, net                 1,467        1,479        1,443
              Inventories                        958          967          869
              Prepaid expenses and other
               assets                            265          243          185
 
                 Total current assets          2,761        2,781        2,558
 
            Land, buildings and
             equipment, net                    3,223        3,339        3,436
            Goodwill and other
             intangible assets, net            4,613        4,596        4,361
            Other assets                         594          551        1,073
 
                                             $11,191      $11,267      $11,428
 
            Liabilities and
             Stockholders' Equity
            Current liabilities:
              Notes payable                   $1,142         $549         $900
              Trade and other payables           602          662          587
              Accrued liabilities                490          746          665
              Accrued income taxes payable       308          237          215
 
                 Total current liabilities     2,542        2,194        2,367
 
            Long-term debt                     2,844        3,225        3,428
            Employee benefits                    603          619          610
            Other liabilities                  1,556        1,553        1,429
            Minority interest                     20           23           19
            Commitments and contingencies
 
            Stockholders' equity:
              Common stock: shares
               issued - 242,078,367              605          605          605
              Additional paid-in capital       1,959        1,956        1,946
              Retained earnings                1,537        1,518        1,414
                                               4,101        4,079        3,965
              Less: Treasury stock               211          214          220
              Less: ESOP shares                  117          119          123
              Accumulated other
               comprehensive income (loss)      (147)         (93)         (47)
 
                 Total stockholders'
                  equity                       3,626        3,653        3,575
 
                                             $11,191      $11,267      $11,428
 
 
                                                                Appendix I
        Rohm and Haas Company
          and Subsidiaries                                      (Unaudited)
 
 
        Net Earnings by Business Segment, excluding non-recurring items (a)
 
                                        Quarter Ended
                                          March 31,
 
                                        2001    2000
                                   (millions of dollars)
     Business segment
       Performance Polymers              $32     $88
       Chemical Specialties               36      48
       Electronic Materials               26      22
       Salt                               18      18
       Corporate                         (48)    (42)
 
          Total                          $64    $134
 
        Per common share, diluted (in
         dollars):                      $.29    $.61
 
     (a) Segment earnings reflect after-tax operating results, net of
 acquisition-related amortization of goodwill and other assets and provision
 for restructuring.
 
 
     2001 Non-recurring items (after tax)                1Q
     Cumulative effect of accounting change             $(2)
 
 
     2000 Non-recurring items (after tax)                1Q
     Restructuring charge, net                          $(8)
     Integration cost, primarily outside consultants     (3)
                              Total                    $(11)
 
 
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SOURCE Rohm and Haas Company
    PHILADELPHIA, April 23 /PRNewswire Interactive News Release/ -- Rohm and
 Haas Company (NYSE:   ROH) issued the following:
 
                                                           Quarter Ended
                                                            March 31st
                                       (in millions, except per-share amounts)
                                                       2001            2000
 
     Net Sales                                         $1,688         $1,765
     Net earnings per share, diluted:
       Before cumulative effect of acctg. change         $.29           $.56
       Cumulative effect of acctg. change               $(.01)            --
       Net earnings                                      $.28           $.56
 
     Net earnings, excluding non-recurring items:
       Net earnings per share                            $.29           $.61
       Cash earnings per share                           $.47           $.78
 
     Shares outstanding, in millions:
       diluted                                          221.0          221.0
 
 
     Rohm and Haas Company today reported first quarter earnings of
 $64 million, or $.29 per share before a one-cent charge related to the
 adoption of a new accounting standard for derivatives and hedging (SFAS 133).
 While this is significantly below the $.56 per share reported for the
 comparable period in 2000, it is squarely within the $.27 to $.29 per share
 range the company provided when it gave earnings guidance in March.  Net
 earnings, excluding the impact of non-recurring items, were $.29 per share in
 2001 and $.61 per share in 2000.
     Sales for the quarter were $1,688 million in 2001, down 4 percent from
 sales of $1,765 million for the same period in 2000.  Sales matched the
 year-ago period on a same business basis, excluding the effect of currency.
     Chairman and CEO Raj L. Gupta said the company's strong market positions,
 technology, geographic reach and internal cost control are enabling Rohm and
 Haas to perform reasonably well in a persistently difficult environment.
 "There is ample evidence that we are outperforming our competition in many of
 the markets we serve," he said.
 
     Business Discussion
     Performance Polymers sales were down 10 percent compared with year-ago
 levels, on a reported basis.  They were down 5 percent on a same-business
 basis.  Sequentially, sales were up more than 6 percent from the fourth
 quarter of 2000, reflecting seasonal patterns.  The Coatings business reported
 good growth during the painting season in Latin America and throughout most of
 the Asia-Pacific region.  Monomers again reported good growth to customers who
 make superabsorbent polymers.  Powder Coatings saw strength in Europe as the
 introduction of new products gained momentum there.  As expected, Specialty
 Polymers, Plastics Additives and Automotive Coatings continued to be most
 affected by the slowdown in the North American building, construction and
 automotive markets.  Gupta noted that Performance Polymers was able to hold
 the gap between raw material/energy costs and selling prices steady at about
 $40 million again during the first quarter.  The businesses obtained selling
 price increases that were sufficient to offset energy cost increases since the
 fourth quarter of 2000.
     Electronic Materials began 2001 with the same strong growth rates it
 reported for most of 2000, but saw significant slowing in demand from North
 American printed wiring board customers as the quarter progressed.  This rapid
 deterioration was offset by continued good growth for leading-edge products
 used to make high-end semiconductor chips.  Sales of deep UV photoresists and
 chemical mechanical planarization (CMP) products each grew 45-50 percent
 compared to the same period a year ago.  As a result, overall sales for
 Electronic Materials were up 8 percent on a same-business basis; up 32 percent
 as reported.  Earnings increased 18 percent on a same-business basis.  During
 the quarter, Rohm and Haas increased its ownership in CMP-producer Rodel to
 98 percent.
     Chemical Specialties sales were down 10 percent from the first quarter of
 2000, due primarily to softer Agricultural Chemicals sales.  Unfavorable
 weather conditions that delayed plantings in North America and increased
 competition in fungicides resulted in the lower sales.  Consumer and
 Industrial Specialties and Ion Exchange Resins both did well during the
 period.  On March 8th, Rohm and Haas announced it will sell its Agricultural
 Chemicals business to Dow AgroSciences LLC.  The U.S. Federal Trade Commission
 finished its Hart-Scott-Rodino review of the transaction, which is scheduled
 for closing in the second quarter of this year.
     The Salt business reported another excellent quarter for ice-control salt
 sales, along with good growth for food processing, industrial and consumer
 salt uses.  Gupta said that discussions have ended with US Salt Holdings LLC
 about a possible alliance involving the Morton Salt business.  "After
 extensive discussions, we could not come up with an arrangement that fit the
 strategic objectives of both companies," he said.
 
     Regional Comments
     A geographic look shows that reported sales were down 4 percent from
 year-ago levels in North America.  Sales were up 18 percent in Asia-Pacific,
 and up 7 percent in Latin America.  Sales in Europe were down 15 percent as
 reported; down just 2 percent, excluding the impact of divested businesses.
 
     Summary
     Gupta acknowledged that it's unlikely that external business conditions
 will change dramatically in the short term for the Performance Polymers
 businesses, but did say there may be indications that some of the headwinds
 they face may be lessening in severity.  "However, we are not waiting for
 external conditions to improve," said Gupta.  "Rather we are doing everything
 we can to improve our position in the marketplace.  This includes defensive
 strategies, such as cost control and inventory management, as well as
 proactive steps, such as technology investments and infrastructure
 improvements.  We will make whatever adjustments we need to bring capacity and
 related costs firmly in line with current market demand, and accelerate sales
 and earnings growth for Performance Polymers once external conditions turn in
 our favor."
     Gupta also addressed the decline in demand seen in Electronic Materials
 from the North American printed wiring board market.  "It's too soon to say if
 we are facing a temporary inventory correction that will last a few months, or
 a slightly more prolonged downturn of a few quarters," he said, "but here,
 too, we are taking our fate firmly in our own hands.  Speed and response are
 critical characteristics for success in the electronics market.  We will not
 hesitate to take whatever additional steps are needed to ensure that we keep
 the right growth trajectory for this successful Electronic Materials
 business."
     Rohm and Haas will discuss its financial performance in greater detail
 during an open teleconference/audio webcast on Tuesday, April 24th at
 10:00 a.m. EDT.  Interested parties can listen to the webcast through the
 "investors" portion of the company's website (www.rohmhaas.com), or by dialing
 in on 888-868-9083 for domestic callers, and 1-973-633-6740 for international
 participants.
     This release contains forward-looking statements.  Actual results could
 vary materially, due to changes in current expectations.  The forward-looking
 statements contained in this announcement concerning demand for products and
 services, sales and earnings growth, actions that may be taken to improve
 financial performance, involve risks and uncertainties, and are subject to
 change based on various factors, including the impact of changes in worldwide
 and national economies, the cost and availability of raw materials and natural
 gas, as well as other energy sources, and the ability to achieve price
 increases to offset such cost increases, development of operational
 efficiencies, changes in foreign currencies, changes in interest rates, the
 continued timely development and acceptance of new products and services, the
 impact of competitive products and pricing, and the impact of tax and other
 legislation and regulation in the jurisdictions in which the company operates.
 Further information about these risks can be found in the company's SEC 10-K
 filing of March 27, 2001.
     Rohm and Haas technology is found in paints and coatings, adhesives and
 sealants, household products, personal computers and electronic components,
 and construction materials. It also helps bring food to the table -- fruits
 and vegetables -- and salt, an essential ingredient for life. The company has
 annual sales of approximately $7 billion and employs 18,000. The company
 operates approximately 140 manufacturing and research sites in 27 countries
 around the world.
 
        Rohm and Haas Company
         and Subsidiaries
        Statements of Consolidated Earnings                         (Unaudited)
 
        (in millions of dollars, except per-share amounts)
 
                                                       Quarter Ended
                                                          March 31,
                                                                       Percent
                                                 2001         2000      Change
 
           Net sales                            $1,688       $1,765        (4)
           Cost of goods sold                    1,181        1,162         2
                Gross profit                       507          603       (16)
 
           Selling and administrative expense      246          261        (6)
           Research and development expense         63           59         7
           Interest expense                         56           62       (10)
           Amortization of goodwill and
            other intangibles                       39           38         3
           Share of affiliate net earnings           3            6       (50)
           Provision for restructuring               -           13         -
           Other income, net                         -           12         -
                Earnings before income taxes       106          188       (44)
           Income taxes                             42           65       (35)
 
           Earnings before cumulative
            effect of accounting change             64          123       (48)
 
           Cumulative effect of accounting
            change, net of income taxes              2            -         -
 
           Net earnings                            $62         $123       (50)
 
           Earnings per common share (in
            dollars):
 
           - Basic
               Before cumulative effect of
                accounting change                 $.29         $.56       (48)
               Cumulative effect of
                accounting change                 (.01)           -         -
               Net earnings                       $.28         $.56       (50)
 
           - Diluted
               Before cumulative effect of
                accounting change                 $.29         $.56       (48)
               Cumulative effect of
                accounting change                 (.01)           -         -
               Net earnings                       $.28         $.56       (50)
 
           Average common shares
            outstanding (millions):
                      - Basic                    220.0        219.2         -
                      - Diluted                  221.0        221.1         -
 
           Other Data:
           EBITDA (excluding non-recurring
            items)                                $311         $412
           Cash earnings per share (excl.
            non-recurring items) *                 .47          .78
           Capital spending                         96           72
           Depreciation expense                    110          106
 
     * - Earnings per share excluding the effect of after-tax amortization
 charges and asset write-up related depreciation expense, both arising from
 recent acquisitions.
 
 
        Rohm and Haas Company
         and Subsidiaries                                  (Unaudited)
 
         Sales by Business Segment and Region (a)
                                                         Quarter Ended
                                                           March 31,
                                                     2001              2000
                                                     (millions of dollars)
                Business Segment
                   Performance Polymers              $794              $882
                   Chemical Specialties               326               362
                   Electronic Materials               297               225
                   Salt                               271               296
 
                     Total                         $1,688            $1,765
 
                Region
                   North America                   $1,009            $1,054
                   Europe                             391               461
                   Asia-Pacific                       215               182
                   Latin America                       73                68
 
                     Total                         $1,688            $1,765
 
          Net Earnings by Business Segment (b)
 
                Business Segment
                   Performance Polymers               $32               $91
                   Chemical Specialties                36                36
                   Electronic Materials                26                22
                   Salt                                18                18
                   Corporate (c)                      (50)              (44)
 
                     Total                            $62              $123
 
         Earnings before interest, taxes,
          depreciation and amortization
          (EBITDA) by Business Segment (d)
 
                Business Segment
                   Performance Polymers              $125              $211
                   Chemical Specialties                78                99
                   Electronic Materials                62                46
                   Salt                                60                63
                   Corporate                          (14)               (7)
 
                     Total                           $311              $412
 
     (a) - 2000 sales have been restated to conform with EITF 00-10 "Accounting
 for Shipping and Handling Fees and Costs."
 
     (b) - Segment earnings reflect after-tax operating results, net of
 acquisition-related amortization of goodwill and other assets and provision
 for restructuring.  The Corporate segment in year 2001 includes the cumulative
 effect of the accounting change related to the adoption of SFAS No. 133,
 "Accounting for Derivative Instruments and Hedging Activities."
 
     (c) - Corporate includes non-operating items such as interest income and
 expense, corporate governance costs and corporate exploratory research.
 
     (d)- EBITDA, as calculated above, may not be comparable to EBITDA as
 reported by other companies.  It should not be considered as an alternative to
 net income as an indicator of operating performance in accordance with
 generally accepted accounting principles.  EBITDA excludes non-recurring items
 which in 2001 includes the cumulative effect of an accounting change.
 
 
        Rohm and Haas Company
         and Subsidiaries
        Consolidated
        Balance Sheets    (Unaudited)
 
        (Millions of dollars, except per-share amounts)
 
                                            March 31,   December 31,  March 31,
                                              2001         2000         2000
            Assets                        (Preliminary)
            Current assets:
              Cash and cash equivalents          $71          $92          $61
              Receivables, net                 1,467        1,479        1,443
              Inventories                        958          967          869
              Prepaid expenses and other
               assets                            265          243          185
 
                 Total current assets          2,761        2,781        2,558
 
            Land, buildings and
             equipment, net                    3,223        3,339        3,436
            Goodwill and other
             intangible assets, net            4,613        4,596        4,361
            Other assets                         594          551        1,073
 
                                             $11,191      $11,267      $11,428
 
            Liabilities and
             Stockholders' Equity
            Current liabilities:
              Notes payable                   $1,142         $549         $900
              Trade and other payables           602          662          587
              Accrued liabilities                490          746          665
              Accrued income taxes payable       308          237          215
 
                 Total current liabilities     2,542        2,194        2,367
 
            Long-term debt                     2,844        3,225        3,428
            Employee benefits                    603          619          610
            Other liabilities                  1,556        1,553        1,429
            Minority interest                     20           23           19
            Commitments and contingencies
 
            Stockholders' equity:
              Common stock: shares
               issued - 242,078,367              605          605          605
              Additional paid-in capital       1,959        1,956        1,946
              Retained earnings                1,537        1,518        1,414
                                               4,101        4,079        3,965
              Less: Treasury stock               211          214          220
              Less: ESOP shares                  117          119          123
              Accumulated other
               comprehensive income (loss)      (147)         (93)         (47)
 
                 Total stockholders'
                  equity                       3,626        3,653        3,575
 
                                             $11,191      $11,267      $11,428
 
 
                                                                Appendix I
        Rohm and Haas Company
          and Subsidiaries                                      (Unaudited)
 
 
        Net Earnings by Business Segment, excluding non-recurring items (a)
 
                                        Quarter Ended
                                          March 31,
 
                                        2001    2000
                                   (millions of dollars)
     Business segment
       Performance Polymers              $32     $88
       Chemical Specialties               36      48
       Electronic Materials               26      22
       Salt                               18      18
       Corporate                         (48)    (42)
 
          Total                          $64    $134
 
        Per common share, diluted (in
         dollars):                      $.29    $.61
 
     (a) Segment earnings reflect after-tax operating results, net of
 acquisition-related amortization of goodwill and other assets and provision
 for restructuring.
 
 
     2001 Non-recurring items (after tax)                1Q
     Cumulative effect of accounting change             $(2)
 
 
     2000 Non-recurring items (after tax)                1Q
     Restructuring charge, net                          $(8)
     Integration cost, primarily outside consultants     (3)
                              Total                    $(11)
 
 
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 SOURCE  Rohm and Haas Company

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