Performance Coatings – Overview

• Revenue up 8 percent in Q2, due to currency effects more than offsetting lower volumes
• Operating income up 24 percent, driven by cost reductions from performance improvement initiatives, margin management activities, manufacturing productivity and currencies
• ROS increased to 14.2 percent (2014: 12.4 percent); ROI increased to 23.9 percent (2014: 22.1 percent)

Revenue was up across the reporting units, benefiting from favorable currencies and higher demand for premium products. Volumes declined in the quarter mainly due to lower capital and maintenance spending in the global oil and gas industry. Russia, Brazil and China remain challenging.

Operating income increased 24 percent driven by cost reductions from performance improvement initiatives (including management de-layering, manufacturing site closures, and general spend reductions), margin management activities, manufacturing productivity and currencies.

Revenue development Q2 2015