 The Decorative Paints business showed a revenue increase of 5 percent (7 percent on a constant currency basis) in the third quarter. Revenue increased across all regions except for North America, where revenue was 4 percent down compared to the previous year. Our growth strategy of investing in brands, distribution and people, as well as expanding into mid-tier markets in high growth regions, is progressing. Sales volume in Asia and Latin America grew by 6 and 10 percent respectively. However, demand in our mature markets remained weak and the pace of growth in Asia slowed. EBITDA was down 25 percent for the quarter due to weaker demand, increased raw material prices and unfavorable product mix effects (customer downtrading) which has impacted profit margins. EBITDA margin was 10.3 percent (2010: 14.4 percent). Further price increases are being implemented. In Europe and North America, there have been changes in management structures and cost reduction actions are underway. Revenue development Q3 2011 |
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