PHILADELPHIA - Rohm and Haas Co. has announced a comprehensive set of actions to restore profitability and ensure the achievement of its Vision 2010 goals by realigning its manufacturing footprint and support services.
making the announcement, Chairman and Chief Executive Officer Raj L. Gupta
noted, "Many of these actions have been discussed publicly in recent
quarters as initiatives that would restore profitability, address the changing
needs of our customers and contribute to our growth objectives. We are now
convinced it is a more prudent course of action to accelerate the
implementation of these plans due to the rapid erosion of business conditions
in the U.S. and the impressive growth of our business in many rapidly
added, “The actions announced today complement the pricing surcharge
implemented recently to address rising raw material, energy and freight costs.
Taken together, these actions demonstrate leadership on our part to remain a
viable, valued supplier to our customers.”
announced actions will impact approximately 925 positions, primarily in North
America, and are expected to result in an estimated $0.35 per share charge for
the second quarter of 2008. In 2010, the company expects to deliver pre-tax
run-rate savings of approximately $110 million, with less than half of the
benefit realized in 2009.
elements of the plan include a 30-percent reduction of installed capacity in
the company's emulsions network in North America, reflecting equally the impact
of productivity improvement efforts and reduced market demand; significant
reductions in overhead expenses for the Specialty Materials group in mature
markets; adjustment of the company's infrastructure for its Electronic
Materials group, reflecting the increased shift of the business to Asia; and a
number of initiatives in other businesses and regions.
company also expects earnings per share from operations to be reduced by $0.11
per share in the second half of 2008, primarily due to accelerated depreciation
and other costs related to these actions.