Costs Increases Persist, But Relief May Be on Horizon

Higher prices helped buoy third-quarter paints and coatings earnings amid continued weakness in construction markets and overall consumer caution, but raw material pressure continued to be a common theme. Paintmakers are optimistic margins will soon improve, but they admit price increases continue to lag the inflation in propylene and titanium dioxide (TiO2) prices over the last 12-18 months. “Despite our efforts to offset these higher input costs, including a round of price increases that went into effect in early October, the lag between raw material cost...

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