Date: 1 July 2002
Brondeau said that the Electronic Materials business would likely show sequential revenue improvement of approximately 15 percent from the first to the second quarter of 2002.
Speaking to investors participating in a virtual Solomon Smith Barney conference today, Brondeau said that advanced technologies used to make high-performance semiconductors, including chemical mechanical planarization (CMP) pads and slurries, deep ultraviolet photoresists, antireflective coatings (ARCs) and electronic finishing materials for chip packaging today represent more than 35 percent of overall Electronic Materials sales. He explained that these technologies enable chipmakers to produce smaller chips, which are more powerful than older generations of semiconductors. Brondeau said, Leading-edge technologies allow chip makers to reliably manipulate design features to less than 0.2 micron and improve production efficiency. He said that manufacturing capacity for leading-edge chips increased 20 percent during the first three months of 2002, and is continuing to grow at a faster pace than the rest of the semiconductor industry.
Brondeau said demand elsewhere within his business has stabilized since the beginning of 2002. All of the segments serving the printed wiring board, semiconductor and electronic finishing markets are showing sequential sales growth in the high single digit to double-digit range, he said, but noted that Electronic Materials has not yet seen a strong recovery in the North American or European printed wiring board markets.
Rohm and Haas Chairman Raj Gupta said last week that he expects the company to report second quarter operating results in the range of $.44 to $.48 per share. He said the results would reflect year-over-year sales growth of approximately 3 percent, led by stronger sales for Electronic Materials, Architectural Coatings, Automotive Coatings and Plastics Additives, and ongoing cost reduction efforts which have improved operational efficiency. The company expects to report second quarter earnings on July 29th.
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This release includes 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, and 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 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 26, 2002.
Rohm and Haas is a Philadelphia-based specialty chemical company which makes products for the personal care, grocery, home and construction markets, and the electronics industry. The company has annual sales of approximately $5.7 billion and operations in more than 25 countries.
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