Strong Third Quarter Results
Sales in Rohm and Haas’ Coatings segment increased five percent over the third quarter of 2005 to $700 million. Third quarter earnings for the coatings segment were $64 million, including $2 million after-tax of restructuring charges, versus $74 million in earnings in the same period in 2005. The improvement was attributed to higher selling prices to recover rising raw materials, higher demand, particularly in emerging markets, along with the favorable impact of currencies.
The company’s architectural and functional coatings sales, which account for the majority of sales in the coatings segment, increased six percent over the comparable period, due to higher pricing necessary to recover rising raw material costs. In addition, the business saw strong demand in the emerging markets, particularly China, Turkey, India and Latin America, along with more modest growth in North America. New products, particularly the low-VOC product lines and other innovative and environmentally friendly products, continue to gain acceptance.
Powder coatings sales increased three percent over the prior year period, driven primarily by higher selling prices and the favorable impact of stronger European currencies, which more than offset the impact of lower demand.