Decorative Paints

  • Volumes increased 6 percent due to positive developments in Asia and Europe, offset by Latin America
  • Revenue down 3 percent due to higher volumes offset by unfavorable currency effects and adverse price/mix
  • EBIT and operating income up 4 percent, mainly due to higher volumes and lower costs, partly offset by unfavorable currencies
  • ROS* increased to 6.0 percent (2015: 5.6 percent); ROI* increased to 12.0 percent (2015: 9.8 percent)

Revenue was down 3 percent. Volumes increased 6 percent, offset by negative currency effects, particularly in Latin America, as well as adverse price/mix. Volumes were up in Asia and Europe, while continued to be down in Latin America.

EBIT and operating income increased 4 percent due to positive volumes and lower costs, partly offset by unfavorable currency developments.

Revenue

First quarter

 

 

 

in € millions

2015

2016

∆%

*

ROS% = EBIT/Revenue. Moving average ROI (in %) = EBIT/12 months average invested capital

Deco Europe, Middle East and Africa

512

512

Decorative Paints Latin America

138

101

(27)

Decorative Paints Asia

240

249

4

Other/intragroup eliminations

(1)

 

Total

890

861

(3)

 

 

 

 

Operating income

50

52

4

EBIT (operating income excluding incidental items)

50

52

4

ROS% *

5.6

6.0

 

 

 

 

 

Average invested capital

2,888

2,899

 

Moving average ROI (in %) *

9.8

12.0

 

 

 

 

 

EBITDA

88

86

(2)

Capital expenditures

37

26

 

Number of employees

15,200

14,900

 

Revenue development Q1 2016

Decorative Paints – Revenue development Q1 2016 (bar chart)Decorative Paints – Revenue development Q1 2016 (bar chart)

Europe, Middle East and Africa

Revenue was flat due to higher volumes offset by unfavorable currencies, including the pound sterling, and adverse price/mix. Positive developments continued in the UK and the Netherlands. Volumes improved in several other countries.

Latin America

Revenue was down 27 percent with positive price/mix more than offset by adverse currency effects and lower volumes. Market conditions remained challenging as economic instability continued and currency devaluation led to raw material inflation. Improvement actions and cost control remained the focus in the region.

Asia

Revenue increased 4 percent due to higher volumes more than offsetting unfavorable currencies and adverse price/mix. Demand was positive in many Asian markets, particularly in South and South East Asia. In China, volumes were positive despite continued challenging conditions in the Chinese construction market.

Inspired by customer insight, our Decorative Paints business has developed an innovative wet tester to help consumers make more informed color choices when decorating their homes. The new user-friendly roller testers were designed following rigorous research and offer maximum convenience. Already launched with great success in France and the Netherlands, the new-look testers will soon be introduced in the UK and Ireland, with other regions to follow. (Photo)

Inspired by customer insight, our Decorative Paints business has developed an innovative wet tester to help consumers make more informed color choices when decorating their homes. The new user-friendly roller testers were designed following rigorous research and offer maximum convenience. Already launched with great success in France and the Netherlands, the new-look testers will soon be introduced in the UK and Ireland, with other regions to follow.