PHILADELPHIA (Dec. 17)—Rohm and Haas Co. will take a pre-tax charge of about $18 million to pay for cash severance and employee separation benefits as part of a restructuring plan that will cut about 200 positions. The restructuring initiative will cover administrative operations, as well as the firm's Adhesives and Sealants, Electronic Materials, and Coatings businesses.
The restructuring program will be completed by next September and is expected to result in annual pre-tax savings of about $27 million, the company said.
The firm said it is sticking by its earlier forecast for 2004 financial results. It expects sales to grow 12-13 percent to $7.2 billion for the year, with earnings in the range of $2.10 to $2.20 per share.
Rohm and Haas also authorized the repurchase of up to $1 billion worth of its common stock through 2008. The timing of the purchases will depend on market conditions and other priorities for cash.
Raj L. Gupta, Rohm and Haas chairman and CEO, said the plan is "consistent with our overall strategy to use the healthy cash generated by our portfolio to increase shareholder value through higher dividends, debt retirement, strategic investments in our core technologies and stock repurchase as appropriate."