The total coatings industry declined 11.3% in volume shipped compared to the
2006 first quarter. Shipment value also declined 3.3%. The slower decline in
shipment value indicates that the price of coatings shipped was higher in
2007.
The Architectural Coatings segment declined 14.4% in volume shipped and
declined 3.0% in shipment value for the quarter. The downturn in housing starts
and resales is having the expected softening of the Architectural segment.
Although, by historical standards, the housing market is still operating at a
fairly high level, the fact that a downturn has begun should be an early
warning sign for the segment.