NEW YORK (AP) - January 20, 2009 As part of the cost-cutting plan, Philadelphia-based Rohm & Haas
also said it is freezing employee salaries and discretionary
spending.
The job cuts represent about 6 percent of the company's work
force.
"We will continue to aggressively protect our company from the
challenges of deteriorating market conditions and a weakening
economy," Raj L. Gupta, Rohm & Haas' chairman and chief executive,
said in a statement.
Rohm & Haas said it plans to complete the latest restructuring
this year.
Dow Chemical agreed last year to buy Rohm & Haas for $15.3
billion. The outcome of the deal was called into question when a
Kuwaiti company in December backed out of a $17.4 billion joint
venture with Dow just days before it was to close.
Dow has said it doesn't need the money from the Kuwaiti venture
to complete the deal, and both companies say the transaction, which
is still awaiting U.S. antitrust clearance, will be completed.
Analysts say the cuts by Rohm & Haas are just the latest signs
of trouble in the chemical sector, and are not tied to the deal
with Dow.
"I don't think this is company specific," said Dimity
Silversteyn of Longbow Research. "This is a response to a tough
environment."
Rohm & Haas also said it expects adjusted earnings per share
from continuing operations for the quarter to exceed the current
analyst consensus estimate. Adjusted earnings per share excludes
one-time items such as restructuring and asset impairment charges,
costs related to the proposed merger with Dow and other one-time
costs such as the effect of hurricanes on the company's operations.
Analysts surveyed by Thomson Financial are looking for a profit
of 62 cents a share on revenue of $2.3 billion. Such estimate
usually exclude one-time charges.
Rohm & Haas shares fell 4.3 percent, or $2.58, to close at $58
Tuesday. The shares have traded between $44.13 and $76.50 over the
past year.
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