Performance Coatings

Revenue was down 3 percent due to higher volumes offset by adverse currencies and unfavorable price/mix. Demand trends differed per region. Volumes were up, mainly driven by Marine and Protective Coatings.

EBIT and operating income was up 9 percent due to higher volumes, management delayering, continuous improvement initiatives and lower costs.

Marine and Protective Coatings

Revenue was up 2 percent with volume growth partly offset by unfavorable price/mix and currencies. In Protective Coatings, higher volumes were driven by project backlog, which continued from Q4, although demand was impacted by lower capital spending in the global oil and gas industries. In Marine Coatings, volumes improved due to New Build projects in Korea, partly offset by weak Maintenance and Repair activities particularly in Europe.

Automotive and Specialty Coatings

Revenue was down 4 percent with positive price/mix offset by adverse currencies and lower volumes. New business in Asia for Consumer Electronics helped to offset a general slow down in Specialty Coatings. Automotive Coatings grew, particularly in North America and Europe.

Industrial and Powder Coatings

Revenue was down 4 percent mainly due to adverse currencies and lower volumes for some segments. Demand for Coil Coatings was strong in Asia and North America, supported by favorable weather conditions, while positive developments for Packaging Coatings in Europe and Asia did not offset lower demand in Americas. Volumes for Powder Coatings were healthy, while demand was subdued for Wood Coatings.

Intended acquisition of BASF’s Industrial Coatings business

The business generated revenue of about €300 million in 2015 and supplies products for a number of end uses, including coil, furniture foil and panel coatings, wind energy and general industry, and commercial transport. The planned transaction is expected to be completed in the later part of the second half of 2016.