Rohm and Haas Announces More Cuts
PHILADELPHIA - Rohm and Haas Co. has announced a second set of actions to adjust its operations and cost structure to reflect the slowing economy and widespread market weakness. The initiatives, which build on actions announced in June of last year, will impact approximately 900 positions across all regions and businesses within the company except Salt, and are expected to result in approximately $90 million in pre-tax restructuring and asset impairment charges in the fourth quarter of 2008. The actions are expected to be completed predominantly in 2009 and are intended to deliver pre-tax run-rate savings of approximately $90 million.
Specific actions include: adjusting production schedules in some manufacturing facilities to reflect current market softness; realigning the company's manufacturing footprint to better utilize assets, including idling or closing underutilized plants; reducing commercial-related positions that have been directly impacted by lower market demand; and freezing discretionary spending and employee salaries, where possible, for 2009.
The company also noted that it expects adjusted earnings per share from continuing operations for the fourth quarter of 2008 to exceed the current analyst consensus estimate.
Adjusted earnings per share excludes various special items such as restructuring and asset impairment charges, costs related to the proposed merger with The Dow Chemical Co., and other one-time costs such as the impact of hurricanes on the company's operations.
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