by Sean Milmo
European Correspondent
milmocw@rodmanmedia.com
The outlook for coatings producers in Europe has suddenly brightened after prospects for higher sales and profits
appeared to be gloomy earlier in the year.
The financial results of some leading players
among coatings producers and raw materials
suppliers for the second quarter and first half
of this year have revealed the first signs of a
possible pick-up in demand in some customer
sectors and in some parts of Europe. These have
been reinforced by figures showing an economic upturn in some of Europe’s major economies.
A recent period of restructuring and reorganizations by companies to reduce their costs
and raise operating efficiency seems to be bearing fruits with improvements in margins.
Furthermore profitability—especially in
the second quarter—has been boosted by the
stabilizing and even decline of raw materials
prices. With some coatings suppliers lower operating costs and cheaper raw materials helped
offset the impact of a decline in sales. The
hope now is that both these advantages will
persist in the second half of the year and into
2014 when demand in Europe is forecast to
gradually strengthen.
Tikkurila of Finland, whose main markets
are Scandinavia, the Baltic states, Poland and
Russia, reported, for example, a 3.1 percent decline in sales in the first half of the year to €347
million ($465 million). But operating profit
went up 11. 8 percent to € 47 million, equivalent
to a margin of 12. 6 percent against 10. 9 percent in the same period last year.
“Despite favorable weather conditions, our
sales volumes continued to decline as construction decreased and the weak economic
The financial
results of some
leading players
among coatings
producers and
raw material
suppliers for the
second quarter
and first half of
this year have
revealed signs of
a possible pick-up
in demand.
Improved Outlook for
Coatings Producers in Europe
