Akzo Nobel, the Dutch chemicals and industrial coatings maker, reported that net profit fell 25% to 270 million euros ($373 million) in the second quarter.
This was despite a 2.7% rise in sales and a 32% increase in operating profit, which rose to 251 million euros ($347 million) from 190 million euros in the same period last year.
The company's net profit fell due to higher taxes.
Akzo said that strengthening economies in Asia and Europe drove demand for its products, while a U.S. slowdown was worsening.
It said that price increases were "restoring margins that were affected by the raw material and energy cost rises of the past two years" even though raw materials prices are still rising slowly in some areas.