Financial highlights

Revenue

Volumes were flat, while adverse currency and price/mix effects resulted in a 4 percent decrease in revenue.

• In Decorative Paints, volumes increased 3 percent due to positive developments in Asia and EMEA, while volumes continued to be lower in Latin America. Revenue was down 3 percent, mainly due to unfavorable currency effects
• In Performance Coatings, volumes were down 2 percent affected by adverse conditions in the marine and oil and gas industries, partly offset by positive developments in other segments. Demand trends differed per segment and region. Revenue was down 6 percent, due to unfavorable currencies, lower volumes and adverse price/mix effects
• In Specialty Chemicals, volumes were up 1 percent with positive developments, especially in Industrial Chemicals, partly offset by lower demand in the oil related segments. Revenue was down 3 percent, mainly due to price deflation in several markets

EBIT

• In Decorative Paints, EBIT was up 2 percent, mainly due to higher volumes and lower costs, partly offset by unfavorable currencies
• In Performance Coatings, EBIT was down 5 percent with continuous improvement initiatives and lower costs more than offset by adverse currencies and lower volumes
• In Specialty Chemicals, EBIT was up 3 percent due to improved volumes and operational efficiencies
• EBIT in other activities improved due to lower costs, in particular corporate costs and pensions

Raw material prices were lower, although in most regions foreign currency effects adversely impacted raw material costs in local currencies.

Operating income

Operating income was positively impacted by primarily non-cash incidental items with a net effect of €12 million, including adjustments to provisions, amongst other for post-retirement benefits, and asset impairments. The incidental items impacted operating income of Decorative Paints, Performance Coatings and the operating income in other activities.

Net financing expenses

Net financing expenses increased as reduced external interest expenses were more than offset by higher interest expenses on provisions.

Tax

The year-to-date effective tax rate was 28 percent (2015: 27 percent), impacted by non-taxable gains and adjustments to previous years.

Net income

Year-to-date net income attributable to shareholders was up 8 percent at €837 million (2015: €776 million). Net income attributable to shareholders in Q3 was €285 million (2015: €285 million).