Rohm and Haas' coatings business reports 16 percent increase in Q2 2005 vs Q2 2004

Rohm and Haas' coatings business reports 16 percent increase in Q2 2005 vs Q2 2004

Rohm and Haas' coatings business reports 16 percent increase in Q2 2005 vs Q2 2004

Sales in the coatings business for Rohm and Haas Company, Philadelphia, of $742 million for the second quarter of 2005 represents a 16 percent increase over the same period in 2004, driven by higher selling prices, with the impact of favorable currency partially offset by slightly lower demand. Sales from architectural and functional coatings, the largest of the coatings businesses, increased 20 percent over the second quarter of 2004, primarily the result of higher selling prices, favorable currency and slightly higher volume. Demand was strong in the North American paint and construction markets, but slower in the paper, industrial and graphic arts markets.

The growth in North America was largely offset by continuing weakness in most markets in Europe, and slower, but improving demand in Asia-Pacific. Powder coatings sales decreased 5 percent over the same period last year, due to weak demand in Western Europe and North America, as well as market share loss, partly offset by favorable currency and selling price increases. The weak demand is partially attributable to the impact of a shift in the customer base to Asia-Pacific. The business recently opened a new plant in Shanghai, China, to take advantage of this market shift.

Automotive coatings sales increased 4 percent over the prior year period, as market share gains and favorable currency offset significant market weakness as a result of lower automobile builds by US producers. Second quarter 2005 earnings for coatings of $68 million, which include $7 million after-tax in restructuring charges for powder coatings, were up from $66 million for the same period last year. Higher selling prices, and the favorable impact of currencies, were partially offset by higher raw material, energy and operating costs.