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Technology Stocks : Hercules HPC -- Ignore unavailable to you. Want to Upgrade?

To: jim who wrote (2)	1/25/2000 8:26:00 AM
From: Big Dog	Read Replies (1) \| Respond to of 21

Hercules Expects Earnings Below Analysts' Estimates WILMINGTON, Del.--(BUSINESS WIRE)--Jan. 21, 2000--Hercules Incorporated (NYSE: HPC - news) announced today that it expects to report fourth quarter earnings, excluding unusual items, 20-25% below current analysts' consensus estimates of $0.57. The company cited as major factors increases in expenses for amortization of new information systems, higher interest charges and corporate costs such as Y2K shutdowns. ``Sales have been stronger in the quarter,' said Vincent J. Corbo, Hercules Chief Executive Officer and President, ``which we expect to be at the highest levels of the year. ``Sales and operating profits in the quarter increased in the Functional Products segment and the Chemical Specialties segment-compared to both third quarter 1999 and fourth quarter 1998,' Corbo pointed out. ``However, while sales rose as well in the Process Chemicals and Services segment, we did experience a downturn in operating profits vs. third quarter 1999, due to paper mill shutdowns and effects of contract pricing within the processing chemicals unit of our Pulp and Paper Division. Nevertheless, PPD will report more than a 10% increase in operating profit over fourth quarter 1998. In the BetzDearborn Division, unanticipated year-end costs also caused an unfavorable comparison with the previous quarter despite achieving the highest sales levels of the year.' ``Overall, the health of our businesses affirms our positive outlook for 2000,' Corbo said. ``We see clear improvement in several key markets including paper, oilfield, and in Asia Pacific and Europe regions. The sales growth in the fourth quarter is expected to gain momentum as we enter 2000. We also anticipate a pickup in gross margins. ``During the quarter we took corrective steps to resolve underperforming businesses, an intention we had announced at the end of last quarter. These included the announcement to exit the nitrocellulose business; closing our organic peroxide manufacturing at Beringen, Belgium; and sale of our Agar business in Latin America. ``We also announced an alliance between BetzDearborn and USFilter to jointly sell products and services for industrial and municipal water and waste water treatment systems. This move expands our presence in the outsourcing market and takes advantage of the complementary technical capabilities of both companies. ``I believe these decisions have positioned the company to move forward with new strength,' Corbo said. ``By concentrating our resources on businesses with best potential, we plan to enhance both sales and earnings performance.' The company plans to release fourth quarter earnings in early February. Hercules manufactures chemical specialties used in making a variety of products for home, office and industrial markets. For more information, visit the Hercules website at www.herc.com. This news release includes forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995, reflecting management's current analysis and expectations, based on reasonable assumptions. Results could differ materially depending on such factors as business climate, economic and competitive uncertainties, higher manufacturing costs, reduced level of customer orders, ability to integrate BetzDearborn, changes in strategies, risks in developing new products and technologies, the ability of Hercules' customers and suppliers to achieve Year 2000 readiness, environmental and safety regulations and clean-up costs, foreign exchange rates, adverse legal and regulatory developments, and adverse changes in economic and political climates around the world. Accordingly, there can be no assurance that the company will meet analysts' earnings estimates. As appropriate, additional factors are contained in reports filed with the Securities and Exchange Commission. This paragraph is included to provide safe harbor for forward-looking statements, which are not required to be publicly revised as circumstances change. ------------------------------------------------------------------------