Exhibit 99.1
Contacts
Media
Ted Lowen, Engelhard Corp.
732-205-6360
Investor Relations
Gavin A. Bell, Engelhard Corp.
732-205-6313
Ref. #C1439
or
Dan Katcher / Eden Abrahams
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449
Engelhard Corporation
101 Wood Avenue,
P.O. Box 770
For immediate release Iselin, NJ Iselin, NJ 08830
ENGELHARD SAYS FIRST-QUARTER RESULTS
TO EXCEED ANALYSTS’ EXPECTATIONS
ISELIN, NJ, March 21, 2006 - Engelhard Corporation (NYSE: EC) announced today that it expects first-quarter earnings to exceed the current consensus of analysts’ expectations driven by strong performances from its technology segments, Materials Services and Ventures Group.
The company said it expects to report first-quarter net earnings per share in the range of 47 to 51 cents, which includes approximately four cents of expenses and two cents of share dilution due to the impact of an unsolicited BASF tender offer. That would make the company’s first-quarter earnings approximately 10% to 19% higher than analysts’ consensus for the period.
The projected first-quarter results reflect year-over-year growth in revenues, operating earnings and operating margins (excluding substrates) in the company’s technology segments.
Engelhard is scheduled to report first-quarter earnings on April 27, 2006.
“Our expected strong first-quarter demonstrates that the significant investments we made in recent years in both organic growth initiatives and strategic acquisitions are indeed paying off,” said Barry W. Perry, chairman and chief executive officer. “Our results from the current and last quarters reflect that our past actions have positioned Engelhard to generate strong earnings growth over the next several years.”
Engelhard expects double-digit earnings growth from its technology segments, strong cash-flow generation and a 13% return on average capital in 2006.
Engelhard Corporation is a surface and materials science company that develops technologies to improve customers’ products and processes. A Fortune 500 company, Engelhard is a world-leading provider of technologies for environmental, process, appearance and performance applications. For more information, visit Engelhard on the Internet at www.engelhard.com.
Forward-Looking Statements: This announcement contains forward-looking statements. There are a number of factors that could cause Engelhard’s actual results to vary materially from those projected in the forward-looking statements. For a more thorough discussion of these factors, please refer to “Forward-Looking Statements” (excluding the first and sixth sentences thereof) on page 34 of Engelhard’s 2005 Annual Report on Form 10-K, dated March 3, 2006 and Exhibit (a)(11) to Amendment No. 2 to the Company's Schedule 14D-9 (Investor Presentation entitled "Engelhard Response to BASF Offer") (excluding the last paragraph of page 33 thereof), filed on February 2, 2006.
Additional Information and Where To Find It. This announcement does not constitute an offer or invitation to purchase nor a solicitation of an offer to sell any securities of Engelhard. In connection with the proposed transaction, BASF filed a Tender Offer Statement on Schedule TO on January 9, 2006, which has been amended (the “Tender Offer Statement”). Engelhard has filed certain materials with the SEC, including a Solicitation/Recommendation Statement on Schedule 14D-9, which has been amended (the “Schedule 14D-9”). Engelhard plans to file with the SEC and mail to its shareholders a Proxy Statement on Form 14A relating to the 2006 annual meeting of shareholders and the election of directors (the “2006 Proxy Statement”). Information regarding the names of Engelhard’s directors and executive officers and their respective interests in Engelhard by security holdings or otherwise is set forth in Engelhard’s Proxy Statement relating to the 2005 annual meeting of shareholders (“2005 Proxy Statement”). Additional information regarding the interests of such potential participants will be included in the 2006 Proxy Statement and other relevant documents to be filed with the SEC in connection with Engelhard’s 2006 annual meeting of stockholders that will be filed with the SEC.
INVESTORS AND SECURITY HOLDERS ARE ADVISED TO READ THESE MATERIALS BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and security holders may obtain a free copy of the Tender Offer Statement, Schedule 14D-9, 2005 Proxy Statement, 2006 Proxy Statement (when it is filed and becomes available) and other documents filed by Engelhard or BASF with the SEC at the SEC's website at http://www.sec.gov. In addition, investors and security holders may obtain a free copy of each of the Schedule 14D-9, 2005 Proxy Statement and 2006 Proxy Statement (when it is filed and becomes available), as well as Engelhard's related filings with the SEC, from Engelhard by directing a request to Engelhard Corporation, 101 Wood Avenue, Iselin, New Jersey 08830, Attention: Investor Relations or at 732-205-5000.
Copies of Engelhard’s letter to stockholders and Schedule 14D-9 may also be obtained from MacKenzie Partners, Inc. by calling 1-800-322-2885 toll free or at 1-212-929-5500 collect or by e-mail at Engelhard@mackenziepartners.com.
