expected to be approximately 4-5% higher than the equivalent period of 2001, although several key businesses are showing weakening demand, compared with earlier expectations, particularly in December 2002.
The company, which is based in Philadelphia, Pennsylvania, USA, says that while its sales are favourable compared with 2001, it is experiencing the impact of some weakening in higher value businesses, such as Coatings and Plastics Additives.
Raj Gupta, the company's chairman and chief executive officer, said: "In the first half of the quarter, we were tracking along expectations, but results in late November 2002 and December 2002 appear to be impacted by inventory reductions by some of our customers and slowing in some end markets."
The expected sales increase for the fourth quarter reflects an almost 20% improvement (yearover-year) in Electronic Materials, and roughly a 15% increase in sales for Coatings, of which 5% represents the impact of the recently acquired European Powder Coatings business of Ferro Corp.
Sales for Adhesives and Sealants will drop by almost 15%. However, after adjusting for the sales from the exited liquid polysulphide business, the sales in this business segment will rise by around 5%, predicts the company.
"We are disappointed by the fourth-quarter earnings performance, which is largely driven by weakening demand towards the end of 2002, a poor sales mix and one-time costs," said Gupta. "However, the company will report full-year operating earnings for 2002 which will be more than 25% higher than 2001.