Operating income

• In Decorative Paints, Q3 operating income was higher than the previous year, mainly due to lower restructuring expenses. Restructuring programs will continue for the remainder of 2014
• In Performance Coatings, the new organizational structure reduces the number of management layers, resulting in higher restructuring costs in the quarter which more than offset operating income improvement
• In Specialty Chemicals, despite the economic slowdown, profitability increased due to benefits from restructuring programs and cost savings, as well as lower restructuring costs

Average raw material costs were stable compared with 2013 exit prices. In some high growth markets, currency effects on imported raw materials have affected some businesses.

ROS for the quarter was 9.1 percent (2013: 8.0 percent). Excluding restructuring charges of €55 million (2013: €75 million), ROS was 10.6 percent (2013: 10.0 percent). The majority of the restructuring charges related to Performance Coatings.