ATLANTA (Reuters) - Paint maker Sherwin-Williams Co (SHW.N: Quote, Profile, Research) reported a 30 percent drop in first-quarter profit on Tuesday as rising oil costs and weak sales to consumers and professional home painters hurt results.

The company stood by its previous forecast for full-year profit, but cited softness in U.S. housing and commercial construction markets that it does not expect to improve in 2008.

"We are not counting on a near-term recovery in the housing markets," Chief Executive Christopher Connor said during a conference call.

He also said oil prices, which hit new highs on Tuesday, were raising costs of chemical commodities, and added that Sherwin-Williams had announced a second round of price increases for the year.

Sherwin-Williams shares fell 33 cents to close at $55.92 on the New York Stock Exchange.

First-quarter earnings were $77.9 million, or 64 cents a share, down from $111.8 million, or 83 cents a share, a year earlier.

Analysts, on average, had expected 60 cents a share, according to Reuters Estimates. Sherwin-Williams cut its first-quarter earnings forecast in March.

Sales rose 1.5 percent to $1.78 billion, better than the $1.71 billion analysts had expected, aided by stronger international sales and acquisitions.

Paint-store group sales fell 1.9 percent, consumer group sales were down 4.8 percent, while global group sales rose 14.8 percent.