EXHIBIT 99.1
NEWS
CONTACTS:
Investors: William Kuser (203) 573-2213
Media: Mary Ann Dunnell (203) 573-3034
CROMPTON EXPECTS SECOND QUARTER LOSS; PROVIDES UPDATE ON
GE TRANSACTION AND ANNOUNCES TELECONFERECE DATE
MIDDLEBURY, CT - July 11, 2003 - Crompton Corporation (NYSE:
CK) announced today that it expects a loss for the second
quarter of 2003 of approximately eight cents per share
including pre-tax charges of $12.4 million for antitrust
related costs and $2.7 million for facility closures,
severance and related costs. For the second quarter of
2002, the Company reported a loss of six cents per share
including pre-tax charges of $34.7 million relating to the
loss on the sale of its industrial specialties business and
$9.3 million for facility closures, severance and related
costs.
Crompton cited higher raw material and energy costs,
reduced unit volume from a generally weaker global economic
environment and lower selling prices. Foreign currency
translation had a 5% favorable impact on sales, but provided
minimal improvement in earnings.
Given the lack of clear visibility in the second half of the
year and recently enacted rules restricting the use of non-
GAAP financial measures, the Company has withdrawn all
previous earnings estimates and is no longer providing
earnings guidance.
On June 18, 2003, the Company announced the expiration of
the waiting period under the Hart-Scott-Rodino Antitrust
Improvements Act with respect to both its sale of its
Organosilicones business to the GE Specialty Materials
division of General Electric Company (NYSE: GE) and its
acquisition of GE's Specialty Chemicals business. As of
today's date, all competition authority clearances necessary
for the closing have been obtained.
The Company will host a teleconference on July 31, 2003 at
4:30 p.m. Eastern time to review second quarter results. A
question-and-answer session will be held following
management's remarks. Interested parties are asked to dial
in approximately 10 minutes prior to the start time at (913)
981-5522 and enter access code 360840. Replay of the call
will be available for two weeks starting at 9 p.m. on July
31. To access the replay, call (719) 457-0820 and enter
access code 360840. Live internet access to the conference
call will be available through the investor relations
section of the Company's website, www.cromptoncorp.com.
Crompton will release second quarter 2003 results on July
31, 2003 prior to the 4:30 p.m. teleconference. Copies of
the release will be available on the investor relations
section of the Company's website.
Crompton Corporation is a $2.5 billion global producer and
marketer of specialty chemicals and polymer products and
equipment. Additional information concerning Crompton
Corporation is available at www.cromptoncorp.com.
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Forward Looking Statements
Certain statements made in this release are forward-looking
statements that involve risks and uncertainties, including,
but not limited to, general economic conditions, the
completion of the GE transaction, the outcome and timing of
antitrust investigations to which the Company is subject,
pension and other post-retirement benefit plan assumptions,
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, 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 our estimates and assumptions and on currently
available information. The forward-looking statements
include information concerning our possible or assumed
results of operations, 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.