Rohm and Haas Sees Earnings Fall

Philadelphia, PA, Feb. 9, 2009--Chemical maker Rohm and Haas, which is locked in a merger dispute with Dow Chemical Co., said on Monday its fourth-quarter profit fell as the global economic slowdown hurt demand for its paints, coatings and electronic materials.

Net income in the quarter was $32 million, or 17 cents a share, compared with a year-ago profit of $180 million, or 91 cents a share.

Excluding items, the company posted earnings of  69 cents a share, down from 90 cents a share, a year earlier. Analysts, on average, had forecast earnings of 63 cents a share, according to Reuters Estimates.

Dow, in July, agreed to acquire rival Rohm and Haas for $15.3 billion, in a bid to expand its specialty chemicals business.

But last month Dow said it would not close the deal on schedule in light of deteriorating economic conditions and the failure of a key joint venture -- the proceeds of which were to fund the Rohm and Haas deal.

Rohm and Haas has sued Dow in a bid to force the largest U.S. chemical maker to close the deal.

On Sunday, Rohm and Haas rejected a possible meeting with top Dow executives to talk about a way forward for their stalled merger, but suggested that the companies' financial advisers should meet.

Dow refused to close its takeover of Rohm and Haas late last month, after a key joint venture with Kuwait fell apart. Dow had intended to use proceeds from that transaction -- a $17.4 billion plastics joint venture -- to help fund the Rohm deal.

Rohm and Haas sued Dow, arguing that the chemical company has no legal basis to walk away from the deal and asking a Delaware court to order it to complete the transaction. A trial on the matter is scheduled to start on March 9.