Performance Coatings – Overview

Full-year revenue was flat with volumes and price up 1 percent, offset by adverse currencies
Full-year operating income up 4 percent to €545 million (2013: €525 million), with operational improvements more than offsetting higher restructuring costs
Full-year ROS increased to 9.8 percent (2013: 9.4 percent)
A new organizational structure was introduced in Q4 with fewer management layers

Full-year revenue was flat compared with the previous year due to adverse currencies. Volumes were up 1 percent, mainly from growth in Marine and Protective Coatings and Powder Coatings. Restructuring activity continued throughout the year, including the implementation of a new Business Area organizational structure with fewer management layers and clearer accountability. The benefit of earlier restructuring and ongoing operational effectiveness more than offset the increase in restructuring costs. As a result, operating income increased 4 percent compared with 2013.

Q4 revenue was up 4 percent on the previous year due to favorable currencies and price/mix. Restructuring costs were in line with 2013, while currencies and margin improvements drove ROS up to 7.5 percent.