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Europe


In Europe, revenue was up 2 percent (up 3 percent in constant currencies). We are still seeing positive revenue developments in Russia and Turkey, but these are offset by lower demand in the mature countries of Europe. The second quarter was challenging with markets deteriorating across the region. The UK was impacted by adverse conditions and down-trading. As a consequence, versus the first quarter, sales growth in Europe halved to 3 percent in constant currencies. Margins in the quarter were under pressure due to a combination of rapidly increasing raw material costs as well as adverse product mix reflecting weaker economic conditions. Additional price increases are planned for the second half of this year to partly offset these effects. The operating costs in the quarter were well-controlled to partly mitigate the lower margins.

Copyright © 2011 Akzo Nobel N.V.