UPDATE 1-Rockwood profit plunges due to charges, weak pigment business
* Second-quarter adj profit $0.73 vs est $0.76
* Revenue up 7 pct
Aug 5 (Reuters) - U.S. chemical maker Rockwood Holdings Inc , which is overhauling its business to focus on lithium production for batteries, reported a lower-than-expected profit, hurt by weakness in its paint pigments business.
The company is struggling to hive off its titanium dioxide pigment manufacturing business, which has been affected by rising costs and falling product prices.
DuPont said last month it planned to exit the paint pigment business to focus on its agriculture unit, where higher sales helped to boost second-quarter profit.
Dow Chemical Co, the largest U.S. chemical maker by sales, is also considering selling its paint, construction and chlorine businesses, reinforcing an industry-wide shift away from cyclical and commodity-based products.
Rockwood earned 73 cents per share in the second quarter, excluding one-time items related to the sale of its clay additives and industrial ceramics businesses.
Princeton, New Jersey-based Rockwood sold its Germany-based industrial ceramics unit CeramTec to European private equity firm Cinven Ltd for $1.99 billion in June.
Revenue rose about 7 percent to $972.3 million due to higher sales of ceramics and anti-corrosion surface treatment chemicals.
In February, Rockwood CEO Seifi Ghasemi described the company's lithium and surface treatment businesses as core.
Analysts on average expected earnings of 76 cents per share on revenue of $955.9 million, according to Thomson Reuters I/B/E/S.
Net income fell 86 percent to $32.3 million, or 41 cents per share, in the second quarter from $224.9 million, or $2.81 per share, a year earlier.
Income in the year-ago quarter included a tax benefit of $125.8 million.
Shares of the company, which has a market value of about $5.30 billion, closed at $68.24 on the New York Stock Exchange on Friday.