Performance Coatings – Overview
- Revenue up 7 percent due to favorable price/mix and currencies offsetting lower volumes
- Volumes down 2 percent, impacted by market developments in Brazil and China and ongoing spending declines in the global oil and gas industry
- Operating income up 45 percent to €792 million (2014: €545 million) due to performance improvement initiatives, management delayering, lower costs, reduced restructuring expenses and currencies
- ROS increased to 13.3 percent (2014: 9.8 percent); ROI increased to 29.4 percent (2014: 22.0 percent)
Full-year revenue was up 7 percent, driven by favorable price/mix and currencies offsetting lower volumes. Volumes were down 2 percent across the segments impacted by lower demand in Brazil and ongoing spending declines in the global oil and gas industry. Market developments in China weakened but differed per segment and therefore had a varied impact on the business segments.
Operating income increased 45 percent due to performance improvement initiatives, management delayering, lower costs, reduced restructuring expenses and currencies.
Performance Coatings implemented a simplified, delayered organization in 2015 to drive organic growth and improve operational efficiency. The program delivered significant improvements, including reduced organizational complexity and manufacturing footprint, as well as increasing the speed of decision making and customer proximity.
In Q4, revenue was up 5 percent, benefiting from favorable price/mix and positive currencies. Volumes were flat, with project strength in our Marine and Protective Coatings businesses offset by lower demand in other segments. Operating income increased 81 percent, driven by lower restructuring costs, favorable price/mix, cost control measures and currencies.