Crompton Expects Lower Third Quarter Earnings.Business Editors GREENWICH, CT--(BUSINESS WIRE)--October 9, 2001 Crompton Corporation Crompton Corporation, formerly Crompton and Knowles, is a chemical research, production, sales and distribution company headquartered in Middlebury, Connecticut. The company produces specialty chemicals used for polymers, fire suppressants and retardants, pool and spa water (NYSE NYSE See: New York Stock Exchange : CK) said today that earnings before special items for the third quarter would be at or near the breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations level versus the Street consensus of seven cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . In addition, the Company expects after-tax charges totalling approximately $70 million ($.61 per share) as a result of the cost reduction program announced earlier in the quarter, most of which will be taken in the third quarter. Expected pre-tax savings from the program amount to $60 million, of which $50 million are expected in 2002. The Company expects to report sales for the third quarter of approximately $650 million, or 12 percent below the prior year. A decline in polymer processing equipment sales of approximately 50 percent versus last year, due to severe cutbacks in domestic capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. , will account for almost half of the company-wide shortfall. Positive sales comparisons in crop protection and petroleum additives will be more than offset by negative comparisons in the other businesses. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Crompton chairman, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Vincent A. Calarco, "Continued weakness in the industrial sector of the economy, exacerbated by the tragic events of September 11, unfavorably affected our results for the third quarter. September sales proved to be lower than expectations, particularly in the aftermath of the terrorist attacks. Nevertheless, we expect that as the economy improves, Crompton is well positioned and leveraged to take full advantage of an increase in demand and to translate that into accelerated profit improvement." Crompton will issue final results for the third quarter after 4 p.m. on October 24, 2001 and will hold a conference call at 9:00 a.m. on the morning of October 25, 2001. To participate in the third quarter conference call, dial 1-719-457-2679. Live audio is available on Crompton's investor relations Investor relations The process by which the corporation communicates with its investors. page at www.cromptoncorp.com. Replay of the conference call will be available for two weeks beginning at 2:00 p.m., Thursday, October 25, by calling 1-719-457-0820, access code 672119. Crompton Corporation is a $3 billion global producer and marketer of specialty chemicals and polymer products and equipment. Certain statements made in this release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties, including, but not limited to, general economic conditions, energy and raw material prices and availability, production capacity, changes in interest rates and foreign currency exchange rates, changes in technology, market demand and customer requirements, expected restructuring activities and cost reductions, the enactment of more stringent environmental laws and regulations, and other risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission. These statements are based on currently available information and the Company's actual results may differ significantly from the results discussed. Forward-looking information is intended to reflect opinions as of the date this release was issued and such information will not necessarily be updated by the Company. |
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