Updated from 11:44 a.m. EDT
Rohm and Haas
, a manufacturer of specialty chemicals and electric materials, dove 15% Monday after the company said it would not meet expectations.
For the quarter ended June 30, Rohm and Haas said net earnings, excluding nonrecurring items, will be close to 42 cents a share. The consensus estimate of analysts polled by
First Call/Thomson Financial
is 55 cents a share before special charges.
Rohm and Haas finished down 5 5/16, or 17%, at 28 11/16.
The Philadelphia-based company said previously that it will incur one-time charges in the second quarter of this year associated with the acquisitions of two companies,
. Last year, Rohm and Haas attributed a net loss of 6 cents a share for the second quarter of 1999, or pro forma earnings of 44 cents a share, to costs and charges associated with the acquisition of
Rohm and Haas blamed the second-quarter's projected shortfall on slow growth in its polymers segment, reduced sales in its agricultural chemicals division, and high raw material and energy costs, saying natural gas prices are up more than 40% and electricity 5% compared with the same period last year. Raj Gupta, chairman and CEO of Rohm and Haas, said the company expects these costs to remain high into the fourth quarter.
"We predicted three months ago that the second quarter would be challenging, and we did not exaggerate the case," said Gupta in a statement. "I am very disappointed by our overall second quarter performance, but heartened by the strength of the results in recently acquired businesses." Gupta cited the 1999 acquisitions of
and Morton International and the 2000 acquisition of Rodel, Acima and others.
The company plans to release its second-quarter earnings results on July 20, after the close of the
New York Stock Exchange
Rohm and Haas will release revised estimates for its full-year performance on Thursday. Gupta said the company's performance in the third and fourth quarters could be similar to that in the second quarter.