Arch Chemicals, Inc. (NYSE: ARJ) announced that the U.S. Department of
Commerce (DOC) has determined the final antidumping duty rate to be 20
percent for the third administrative review period. This ruling relates
to chlorinated isocyanurates (isos) that the Company imported from its
major Chinese supplier for the period from June 1, 2007 through May 31,
2008. During this period, the Company paid duty rates of 76 percent for
part of the period and 20 percent for the remainder of the period. This
final determination supercedes the DOC’s preliminary ruling published in
June of this year and is appealable to the Court of International Trade.
Arch estimates that the net impact of this final duty will result in a
pre-tax benefit of approximately $1 million and this benefit will be
recognized in the fourth quarter of 2009. The timing and amount of this
final duty is consistent with the Company’s previous guidance and
expectations. In addition, the Company will now begin paying cash
deposits for imports of isos at this final published rate of 20 percent.
About Arch
Headquartered in Norwalk, Connecticut (USA), Arch Chemicals, Inc. is a
global Biocides company with annual sales of approximately $1.5 billion.
Arch and its subsidiaries provide innovative, chemistry-based and
related solutions to selectively destroy and control the growth of
harmful microbes. The Company’s concentration is in water treatment,
hair and skin care products, treated wood, preservation and protection
applications such as for paints and building products, and health and
hygiene applications. Arch Chemicals operates in two segments: Treatment
Products and Performance Products. Together with its subsidiaries, Arch
has approximately 3,000 employees and manufacturing and customer-support
facilities in North and South America, Europe, Asia, Australia and
Africa. For more information, visit the Company’s Web site at http://www.archchemicals.com.
Except for historical information contained herein, the information
set forth in this Form 10-Q contains forward-looking statements that are
based on management's beliefs, certain assumptions made by management
and management's current expectations, outlook, estimates and
projections about the markets and economy in which the Company and its
various businesses operate. Words such as "anticipates,” "believes,”
"estimates,” "expects,” "forecasts,” "intends,” "opines,” "plans,”
"predicts,” "projects,” "should,” "targets” and variations of such words
and similar expressions are intended to identify such forward-looking
statements. These statements are not guarantees of future performance
and involve certain risks, uncertainties and assumptions ("Future
Factors”), which are difficult to predict. Therefore, actual outcomes
and results may differ materially from what is expected or forecasted in
such forward-looking statements. The Company undertakes no obligation to
update publicly any forward-looking statements, whether as a result of
future events, new information or otherwise. Future Factors which could
cause actual results to differ materially from those discussed include
but are not limited to: general economic and business and market
conditions; continued weakening in U.S., European and Asian economies;
increases in interest rates; changes in foreign currencies against the
U.S. dollar; customer acceptance of new products; efficacy of new
technology; changes in U.S. or foreign laws and regulations; increased
competitive and/or customer pressure; loss of key customers; the
Company's ability to maintain chemical price increases;
higher-than-expected raw material and energy costs and availability for
certain chemical product lines; a change in the antidumping duties on
certain products; increased foreign competition in the calcium
hypochlorite markets; inability to obtain transportation for our
chemicals; unfavorable court decisions, including unfavorable decisions
in appeals of antidumping rulings, arbitration or jury decisions or tax
matters; the supply/demand balance for the Company's products, including
the impact of excess industry capacity; failure to achieve targeted
cost-reduction programs; capital expenditures in excess of those
scheduled; environmental costs in excess of those projected; the
occurrence of unexpected manufacturing interruptions/outages at customer
or Company plants; a decision by the Company not to start up the
hydrates manufacturing facility; unfavorable weather conditions for
swimming pool use; inability to expand sales in the professional pool
dealer market; the impact of global weather changes; changes in the
Company’s stock price; ability to obtain financing at attractive rates;
financial market disruptions that impact our customers or suppliers; and
gains or losses on derivative instruments.
