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Performance Coatings – Overview

  • Full-year revenue up 16 percent, with volumes up 7 percent
  • EBITDA up 9 percent for the year
  • Margin management mitigating higher raw material costs
  • Better trading conditions in 2010, especially in Industrial Coatings, Car Refinishes and Powder Coatings
  • Integration of acquired activities delivering results

Performance Coatings had a good year, with revenue up 16 percent (in constant currencies: 9 percent). Volume increases were seen in all businesses and all geographic regions, especially in Eastern Europe, Latin America and Asia. Powder Coatings showed the largest increase due to an acquisition followed by Industrial Coatings, driven by good performances in Coil and Packaging Coatings. Wood Finishes and Adhesives and Marine and Protective Coatings had slower volume growth due to continued weak demand in the US housing market and lower investment levels in the European and US markets. Raw material price increases had a negative impact on the full-year results in all businesses, showing a significant increase in the second half of the year. Margin management programs, including selling price increase, and restructuring efforts in mature markets, are ongoing and continue to support performance. Full-year EBITDA in Performance Coatings increased 9 percent, where the positive currency impact was 7 percent, and ended at €647 million. The EBITDA margin was 13.5 percent (2009: 14.4 percent).

Q4 showed a similar trend as Q3, with improved activity levels in all business. Revenue ended up 22 percent over last year, supported by currencies (9 percent), acquisitions (5 percent) and volume (5 percent). Costs were kept under control, however, margins were impacted by higher raw material prices. As a result, EBITDA in the quarter was down 5 percent (positive currency impact 7 percent) to €147 million (€154 million in 2009).

Revenue development 2010

Performance Coatings – Revenue development 2010 (bar chart)

Revenue development Q4 2010

Performance Coatings – Revenue development Q4 2010 (bar chart)
Performance Coatings – Brands (logos)
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