24 July 2008 18:04 [Source: ICIS news]
HOUSTON (ICIS news)--The first-half pricing structure of US specialty chemicals producer Rohm and Haas lagged behind raw material costs, company executives said on Thursday.
"We experienced dramatic, unprecedented and unrelenting increases in raw material, energy and freight costs," CEO Raj Gupta said during an earnings conference call.
"These prices keep rising," he said. "Until they stop, we will always be a little bit in the hole."
Second-quarter pricing rose by $95m (€60m) year on year, Gupta said. However, costs rose by $135m for raw materials, energy and freight.
Altogether, costs for the year should increase by nearly $700m, he said.
Rohm and Haas has adopted a new pricing structure for the second half of the year that should address the lag in raw-material costs, said Pierre Brondeau, Rohm and Haas president.
However, the new structure will not address the lag in first-half pricing, Gupta said.
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