Revenue in the US was 12 percent above 2010 (in constant currencies: up 17 percent), which was primarily driven by the new business with Walmart. In 2011, the US paint market was essentially flat versus the prior year, primarily driven by weakness in the trade market. In 2011, we continued our investment in the Glidden brand and introduced Glidden Duo and Glidden Trim and Door products at The Home Depot. Profit performance in the US declined due to raw material cost increases outpacing pricing actions, a weaker product mix, stock write-offs and investments in Walmart.
In Canada, 2011 revenue was 5 percent below 2010 (in constant currencies: down 4 percent), mainly driven by volume. Demand for paint in 2011 was not as strong as it was in 2010, when a strong real estate market and home renovation tax credits acted as key contributors to economic growth. In addition, Canada’s growth was impacted by slow recovery in the US and rising inflation, all of which undermined the confidence of consumers.
In Latin America, full-year revenue was 15 percent above 2010 (in constant currencies: 17 percent). All countries contributed to the accelerated growth in the region by building brand equity through the activation of our mission: Adding Colour to People’s Lives. This brand equity was converted into market share and profit through point-of-sale locations and the innovative execution of the Tudo de Cor Minha Casa (I want colors for my house) program in Brazil.
Q4 revenue in the Americas increased by 16 percent (in constant currencies: 17 percent), mainly driven by Latin America and the US. Volume development in the US increased significantly due to the Walmart contract.