Change

Revenue development in % versus 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

Volume

 

Price

 

Acquisitions/ divestments

 

Exchange rates

 

Total

Decorative Paints

 

5

 

3

 

 

(1)

 

7

Performance Coatings

 

2

 

5

 

2

 

(1)

 

8

Specialty Chemicals

 

1

 

7

 

 

 

8

Total

 

2

 

5

 

1

 

(1)

 

7

Decorative Paints

In Decorative Paints, full-year revenue growth was 7 percent, with volumes up 5 percent, price increases up 3 percent and an adverse impact of currencies of 1 percent. Revenue in Asia and the Americas showed double digit growth in 2011, mainly driven by price increases and the new Walmart contract in the US. Demand declined in Europe, while growth rates achieved in China and South East Asia outpaced market growth. However, the pace of market growth slowed down in these markets in the second half of the year.

Performance Coatings

Performance Coatings’ 2011 revenue was up 8 percent, supported by volumes (2 percent), acquisitions (2 percent) and price (5 percent). Adverse currency impact was 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.

Specialty Chemicals

Specialty Chemicals had a solid performance during 2011. Revenue grew over 2010 on price increases, with limited overall volume growth due to the economic slowdown and growth being hampered in some businesses due to capacity constraints. Volume growth was evident in market sectors for Surface Chemistry and Pulp and Paper Chemicals, where the demand remained strong.

Acquisitions and investments

In 2011 we made several acquisitions and significant investments:

  • In Decorative Paints, we entered into a partnership in China with Quangxi CAVA Titanium Industry Co. Ltd. to help ensure supply of titanium dioxide (TiO2). In addition, we are investing €110 million in a replacement manufacturing facility in the North East of England
  • In Performance Coatings, the acquisition of coatings manufacturer Schramm Holding AG closed in early October. This acquisition will enable us to strengthen our global leadership position in specialty plastic coatings. We are also investing €60 million to increase the production capacity of our Automotive and Aerospace Coatings business in China to meet rising demand
  • In Specialty Chemicals, we finalized the acquisition of Boxing Oleochemicals (completed in January 2012). Boxing is the leading supplier of nitrile amines and derivatives in China and throughout Asia. We are investing €170 million in two new facilities being built in Brazil to supply two of the world’s largest pulp mills. We are also investing €45 million in Ningbo, China, and €140 million to convert our chlorine plant in Frankfurt, Germany, to membrane electrolysis technology

We expect that our capital expenditures in 2012 will be in line with 2011.

Revenue in € millions

Revenue (bar chart)

Revenue development
in % versus 2010

Revenue development versus 2010 (bar chart)
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