Decorative Paints

  • Volumes increased 1 percent mainly due to positive developments in Asia
  • Revenue down 7 percent, due to unfavorable currency effects
  • EBIT and operating income up 2 percent, mainly due to higher volumes and lower costs, partly offset by adverse currency effects
  • ROS increased to 12.4 percent (2015: 11.3 percent); ROI increased to 12.3 percent (2015: 10.4 percent)

Volumes were up in Asia, continued to be down in Latin America and were slightly lower in Europe. Revenue was down 7 percent due to unfavorable currency effects.

EBIT and operating income were up 2 percent, mainly due to higher volumes and lower costs, partly offset by adverse currency effects. In all regions foreign currency effects adversely impacted raw material costs in local currencies.

Revenue

Second quarter

 

January-June

2015

2016

∆%

in € millions

2015

2016

∆%

*

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

665

627

(6)

Deco Europe, Middle East and Africa

1,177

1,139

(3)

133

104

(22)

Decorative Paints Latin America

271

205

(24)

336

324

(4)

Decorative Paints Asia

576

573

(1)

 

Other/intragroup eliminations

(1)

 

1,134

1,055

(7)

Total

2,024

1,916

(5)

 

 

 

 

 

 

 

128

131

2

Operating income

178

183

3

128

131

2

EBIT

178

183

3

11.3

12.4

 

ROS% *

8.8

9.6

 

 

 

 

 

 

 

 

 

 

 

Average invested capital

2,953

2,856

 

 

 

 

Moving average ROI (in %) *

10.4

12.3

 

 

 

 

 

 

 

 

39

26

 

Capital expenditures

76

52

 

 

 

 

Number of employees

15,200

14,700

 

Revenue development Q2 2016

Decorative Paints – Revenue development Q2 2016 (bar chart)Decorative Paints – Revenue development Q2 2016 (bar chart)

Europe, Middle East and Africa

Recent developments have increased uncertainty in some countries, for example as a result of the UK referendum. Currency volatility has also increased, including for the pound Sterling. Volumes were slightly down in the region. Revenue was down 6 percent mostly due to unfavorable currencies and price/mix.

Latin America

Market conditions remained challenging due to economic instability and currency devaluation. Revenue decreased 22 percent mainly due to adverse currency effects, while positive price/mix offset lower volumes. Improvement actions and cost control remained the focus in the region.

Asia

Demand was positive in many Asian markets. In China, volumes were positive despite continued challenging conditions in the construction market. Revenue reduced 4 percent due to higher volumes more than offset by unfavorable currencies and adverse price/mix.

Children in Brazil can now test their all round sporting skills, thanks to the inspiring and imaginative use of paint. Launched in Rio, our Unexpected Courts project uses paint to create courts and spaces in surprising places, where children can play alternative sports such as basketball, volleyball, hockey and table tennis. (Photo)

Children in Brazil can now test their all-round sporting skills, thanks to the inspiring and imaginative use of paint. Launched in Rio, our Unexpected Courts project uses paint to create courts and spaces in surprising places, where children can play alternative sports such as basketball, volleyball, hockey and table tennis.