Rohm and Haas Company and Subsidiaries Consolidated Statements of

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					Rohm and Haas Company and Subsidiaries
Consolidated Statements of Operations
(in millions, except per share amounts)
(unaudited)
                                                                                       Three Months Ended                               Six Months Ended
                                                                                             June 30,                                       June 30,
                                                                                                                Percent                                     Percent
                                                                                2007              2006          Change        2007              2006        Change
  Net sales                                                                $      2,190       $     2,081            5%   $     4,350       $     4,139          5%
  Cost of goods sold                                                              1,586             1,450            9%         3,137             2,863        10%
     Gross profit                                                                    604               631         -4%          1,213              1,276       -5%

  Selling and administrative expense                                                 277               258                        537               506
  Research and development expense                                                    73                70                        141               139
  Interest expense                                                                    23                27                         47                52
  Amortization of intangibles                                                         14                14                         28                27
  Restructuring and asset impairments                                                 11                 -                         10                 4
  Share of affiliate earnings, net                                                     6                 4                         11                 5
  Other (income), net                                                                (10)               (2)                       (29)              (16)
     Earnings from continuing operations before income taxes
     and minority interest                                                           222               268                        490               569
  Income taxes                                                                        57                73                        132               163
  Minority interest                                                                    4                 3                          7                 7
  Net earnings from continuing operations                                  $         161      $        192                $       351       $       399

  Net earnings from discontinued operation                                            (1)               (26)                        1                (26)

     Net earnings                                                          $         160      $        166                $       352       $       373

  Basic net earnings per share:
  Net earnings from continuing operations                                           0.76               0.88                      1.63               1.81
  Net earnings from discontinued operation                                         (0.01)             (0.13)                     0.01              (0.12)
  Net earnings                                                             $        0.75      $        0.75               $      1.64       $       1.69

  Diluted net earnings per share:
  Net earnings from continuing operations                                           0.75               0.87                      1.61               1.79
  Net earnings from discontinued operation                                         (0.01)             (0.12)                      -                (0.12)
  Net earnings                                                             $        0.74      $        0.75               $      1.61       $       1.67

  Weighted average common shares outstanding - basic:                               213.7             220.3                      215.1             220.5
  Weighted average common shares outstanding - diluted:                             216.9             222.6                      218.3             222.8

  Other Data:
  Capital spending                                                         $          110     $         92                $       187       $       145
  Depreciation expense                                                     $          104     $        102                $       206       $       204

  Certain reclassifications have been made to prior year amounts to conform to the current year presentation.
                                                           Appendix I
Rohm and Haas Company and Subsidiaries
(in millions)
(unaudited)
  Net Sales by Business Segment and Region
                                                     Three Months Ended                   Six Months Ended
                                                           June 30,                            June 30,
                                                     2007           2006                2007            2006
  Business Segment
   Paint and Coatings Materials                  $        604    $        579       $      1,082     $     1,064
   Packaging and Building Materials                       464             456                913             910
   Primary Materials                                      560             508              1,042             989
   Elimination of Intersegment Sales                     (312)           (298)              (563)           (570)
    Specialty Materials Group                    $      1,316    $      1,245       $      2,474     $     2,393
   Electronic Materials Group                             400             393                785             767
   Performance Materials Group                            296             283                586             556
   Salt                                                   178             160                505             423
    Total                                        $      2,190    $      2,081       $      4,350     $     4,139
  Customer Location
   North America                                 $      1,047    $      1,061       $      2,141     $     2,164
   Europe                                                 582             521              1,142           1,013
   Asia-Pacific                                           471             418                893             805
   Latin America                                           90              81                174             157
    Total                                        $      2,190    $      2,081       $      4,350     $     4,139


  Net Earnings (Loss) from Continuing Operations by Business Segment
                                                     Three Months Ended                   Six Months Ended
                                                           June 30,                            June 30,
                                                     2007           2006                2007            2006
  Business Segment
   Paint and Coatings Materials                  $         76    $          78      $        129     $          138
   Packaging and Building Materials                        36               39                 64                 76
   Primary Materials                                       17               37                 47                 91
     Specialty Materials Group                   $       129     $        154       $        240     $          305
   Electronic Materials Group                              69               62               129                115
   Performance Materials Group                             19               16                 40                 34
   Salt                                                     4                2                 37                 20
   Corporate                                              (60)             (42)               (95)               (75)
    Total                                        $       161     $        192       $        351     $          399


  Certain reclassifications have been made to prior year amounts to conform to the current year presentation.
Rohm and Haas Company and Subsidiaries                                 Appendix II
(in millions)
(unaudited)
  Provision for Restructuring and Asset Impairments by Business Segment


  Pre-tax                                                          Three Months Ended                  Six Months Ended
                                                                         June 30,                           June 30,
                                                                    2007          2006                 2007          2006
  Business Segment
   Paint and Coating Materials                                 $          -    $          -       $          -     $          -
   Packaging and Building Materials                                       1              (1)                 1                5
   Primary Materials                                                      -               -                  -                -
     Specialty Materials Group                                 $          1    $         (1)      $          1    $           5
   Electronic Materials Group                                            (2)              -                 (3)              (1)
   Performance Materials Group                                           (1)              -                 (1)               -
   Salt                                                                   -               -                  -                -
   Corporate                                                             13               1                 13                -
    Total                                                      $         11    $          -       $         10     $          4

  After-tax                                                        Three Months Ended                  Six Months Ended
                                                                         June 30,                           June 30,
                                                                   2007           2006                2007           2006
  Business Segment
   Paint and Coating Materials                                 $          -    $          -       $          -     $          -
   Packaging and Building Materials                                       1              (1)                 1                3
   Primary Materials                                                      -               -                  -                -
     Specialty Materials Group                                 $          1    $         (1)      $          1    $           3
   Electronic Materials Group                                            (1)              -                 (2)              (1)
   Performance Materials Group                                           (1)              -                 (1)               -
   Salt                                                                   -               -                  -                -
   Corporate                                                              8               1                  8               (1)
    Total                                                      $          7    $          -       $          6     $          1

  EBITDA (1) by Business Segment
  Due to the varying impacts of debt, interest rates, acquisition related amortization, asset impairments and
  effective tax rates, EBITDA is calculated to facilitate comparisons between Rohm and Haas Company and its
  competitors. EBITDA is not a measurement recognized in accordance with generally accepted accounting
  principles (GAAP) and should not be viewed as an alternative to GAAP measures of performance.
  Furthermore, this measure may not be consistent with similar measures presented by other companies.


                                                                   Three Months Ended                  Six Months Ended
                                                                         June 30,                           June 30,
                                                                   2007           2006                2007           2006
  Business Segment
   Paint and Coating Materials                                 $       120     $        122       $        209    $         223
   Packaging and Building Materials                                     65               71                122              140
   Primary Materials                                                    44               72                106              173
     Specialty Materials Group                                 $       229     $        265       $        437    $         536
   Electronic Materials Group                                          122              107                227              206
   Performance Materials Group                                          43               39                 89               82
   Salt                                                                 27               23                 95               70
   Corporate                                                           (42)             (26)               (61)             (43)
    Total                                                      $       379     $        408       $        787    $         851

  Reconciliation of EBITDA to Earnings from Continuing Operations
                                                                   Three Months Ended                   Six Months Ended
                                                                         June 30,                            June 30,
                                                                   2007           2006                2007            2006
  EBITDA                                                       $       379    $       408         $        787    $       851
  Asset Impairments                                                     16              -                   16              3
  Interest expense                                                      23             27                   47             52
  Income taxes                                                          57             73                  132            163
  Depreciation expense (2)                                             104             99                  206            200
  Amortization of finite-lived intangibles                              14             14                   28             27
  Minority Interest                                                      4              3                    7              7
  Earnings from Continuing Operations                          $       161    $       192         $        351    $       399

  (1) EBITDA is defined as Earnings from Continuing Operations Before Interest, Taxes,
  Depreciation and Amortization, Asset Impairments and Minority Interest.

  (2) Excludes depreciation from the Automotive Coatings business, which is classified as a discontinued operation in our
  Consolidated Statements of Operations.

  Certain reclassifications have been made to prior year amounts to conform to the current year
  presentation.
                                                              Appendix III
Rohm and Haas Company and Subsidiaries

(unaudited)
   Change in Net Sales by Business Segment and Region
                                                                                            Three Months Ended
                                                                                                  June 30,
                                                       Demand            Price                  Currency            Other                  Total
   Business Segment
    Paint and Coatings Materials                   %           2    %            -            %         2       %                 -    %            4
    Packaging and Building Materials                          (2)                     1                 3                   -                       2
    Primary Materials (3rd Party)                             18                     (3)                4                       (1)                18
     Specialty Materials Group                                 3                 -                      3                         -                 6
    Electronic Materials Group                                 2                 -                          -                      -                2
    Performance Materials Group                                1                      1                 4                       (1)                 5
    Salt                                                       5                      5                     -                    1                 11
     Total                                         %           3    %                 1       %         2       %               (1)    %            5
   Customer Location
    North America                                  %          (2)   %                 1       %             -   %                 -    %           (1)
    Europe                                                     4                      1                 8                       (1)                12
    Asia-Pacific                                              12                        -               1                         -                13
    Latin America                                             13                     (1)                1                       (2)                11
     Total                                         %           3    %                 1       %         2       %               (1)    %            5

   Certain reclassifications have been made to prior year amounts to conform to the current year presentation.