According to the company, the largest impacts on sales came from the continuing poor U.S. and South American economic conditions, weakening foreign currency exchange rates and previously announced discontinued paint programs at certain customers.
Net income for the quarter dropped to $90.5 million from $115.8 million reported in 2000. Six month net income dropped from $156.8 million reported in 2000 to $127.4 million.
Paint store segment sales dropped 1.9% to $884.2 million. For the six month period, segment sales fell less than one percent to $1.58 billion. The consumer segment reported a 8.1% drop in sales to $326.3 million for the quarter and a 11.8% drop to $599.7 million for the six months. The automotive finish segment reported a 3.4% drop in sales to $124.7 million for the quarter and a 3.8% slide to $240.5 million for the first half of year. International coatings segment sales fell 6.5% for the quarter to $70.6 million, while half-year sales were $143.9 million, a 3.4% decline, according to the company.
“The continuing soft economic activity negatively impacted our sales and operating profits in the second quarter and first six months of the year,” said Christopher M. Connor, chairman and CEO. “We have continued to invest in our business through the opening of new stores and the introduction of new products. Though sales in the automotive finishes segment were impacted by the ongoing softness in the OEM and class 8 truck portion of that business, the strengthening in our collision repair business encouraged us.”