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Performance Coatings – Overview

  • Full-year revenue up 8 percent, with volumes up 2 percent
  • EBITDA 6 percent behind prior year
  • Margins impacted by higher raw material cost
  • Performance improvement program initiated
  • Strong growth in Industrial Coatings but weakness in Wood Finishes and Adhesives
  • Integration of acquired activities delivering results

Performance Coatings 2011 revenue was up 8 percent, supported by volumes (2 percent), acquisitions (2 percent), and price (5 percent), and adversely impacted by currencies (1 percent). Industrial Coatings showed the largest volume increase, driven by good performances in Packaging and Coil Coatings, while Wood Finishes and Adhesives had lower volumes due to weaker demand in the housing market. Powder Coatings volumes, excluding acquisitions, were impacted in the second half of the year by the weak economic environment. Raw material price increases had a negative impact on the full-year results in all businesses; the rate of increase began to soften in Q4 2011. Margin management programs – including selling price increases and restructuring efforts in mature markets – are ongoing and continue to support performance. Full-year EBITDA ended at €611 million, with an EBITDA margin of 11.8 percent (2010: 13.5 percent).

In Q4, revenue ended up 7 percent over last year, supported by price (7 percent) and acquisitions (2 percent); volumes were lower compared to the previous year same quarter (2 percent). Signs of a reduction in the rate of raw material price increases were evident in Q4, although margins were still impacted by the increased prices. As a result, EBITDA in the quarter was €141 million (€147 million in 2010).

Revenue development 2011

Performance Coatings – Revenue development 2011 (bar chart)

Revenue development Q4 2011

Performance Coatings – Key brands (logos)
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