Decorative Paints

  • Volumes increased 3 percent due to positive developments in Asia and EMEA
  • Revenue down 3 percent, mainly due to unfavorable currency effects
  • EBIT up 2 percent, mainly due to higher volumes and lower costs, partly offset by unfavorable currencies
  • ROS was up at 12.0 percent (2015: 11.5 percent); ROI increased to 12.5 percent (2015: 10.6 percent)

Volumes were up in Asia and EMEA, while volumes continued to be lower in Latin America. Revenue decreased 3 percent with positive volumes more than offset by unfavorable currency effects.

EBIT was up 2 percent, mainly due to higher volumes and lower costs, partly offset by unfavorable currencies. Operating income was positively impacted by incidental items.

Revenue

Third quarter

 

January-September

2015

2016

∆%

in € millions

2015

2016

∆%

*

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

610

583

(4)

Deco Europe, Middle East and Africa

1,787

1,722

(4)

143

134

(6)

Decorative Paints Latin America

414

339

(18)

300

307

2

Decorative Paints Asia

876

880

 

(3)

 

Other/intragroup eliminations

 

(4)

 

1,052

1,021

(3)

Total

3,076

2,937

(5)

 

 

 

 

 

 

 

121

132

9

Operating income

299

315

5

121

123

2

EBIT

299

306

2

11.5

12.0

 

ROS% *

9.7

10.4

 

 

 

 

 

 

 

 

 

 

 

Average invested capital

2,978

2,820

 

 

 

 

Moving average ROI (in %) *

10.6

12.5

 

 

 

 

 

 

 

 

37

9

 

Capital expenditures

113

61

 

 

 

 

Number of employees

15,100

14,800

 

Revenue development Q3 2016

Decorative Paints – Revenue development Q3 2016 (bar chart)Decorative Paints – Revenue development Q3 2016 (bar chart)

Europe, Middle East and Africa (EMEA)

Volumes were up, while revenue reduced 4 percent due to unfavorable currencies and price/mix effects. Demand trends differed per country in the region and uncertainty continued in some markets. Currency volatility remained, including for the pound sterling.

Latin America

Revenue decreased 6 percent mainly due to adverse currency effects. Market conditions in the region remained challenging due to economic instability and currency devaluation. Improvement actions and cost control remained the focus in the region.

Asia

Positive demand trends in many Asian markets continued and revenue increased 2 percent. Volumes increased, including in China, despite continued challenging conditions in the Chinese construction market.

Research shows that many consumers struggle with color choices and seek ideas for home decoration. Global marketing tools and initiatives such as our 2017 Color of the Year – Denim Drift – help inspire customers to make confident color choices and drive growth for our business. (Photo)

Research shows that many consumers struggle with color choices and seek ideas for home decoration. Global marketing tools and initiatives such as our 2017 Color of the Year – Denim Drift – help inspire customers to make confident color choices and drive growth for our business.