Automotive Coatings giant profits down prospect of the industry and unpredictable - automotive coati
Automotive Coatings giant profits down prospect of the industry and unpredictable - automotive coati
Involved in the automotive and residential Market The rapid cooling, the global paint and coatings manufacturer profitability has generally declined. Current spread to the global financial crisis on the already fragile paint and coatings industry is even worse. Most manufacturers have already said on the earnings prospects for the next few quarters no longer have any hope, some manufacturers have even announced restructuring plans, including layoffs and shut-off devices. In the new residential and automotive market outlook remains gloomy situation, the global paint and coatings industry woeful.
Poor demand situation According to the American Chemical Market (Chemark) Consulting statistics show that far this year, the global architectural paint and coatings market, demand has dropped by more than 20% of the area of the global automotive OEM paint and coatings demand has declined more than 17%, the estimated end of this year the demand for these two markets will fall 30% and 35%. Areas of architectural and automotive paints and coatings industry, the two largest end markets, both market downturn has made the paint and coatings industry into the "winter."
President, according to Chemark Fair? Phillips (PhilPhillips) said that from 2000 to 2005, the global architectural paint market, the average annual demand growth of about 3.4%, but the next two years, the global economic crisis, the market demand will be reduced, but the Chinese architectural coatings market demand will continue at an average annual rate of 8.8% in the rapid growth. In the field of automotive coatings, the current market capitalization of 7.74 billion U.S. dollars of the original equipment manufacturer market is also facing many challenges. According to analysts, said the next five years, the North American automotive OEM market, the average annual demand growth is expected to only 1.7%, mainly due to deterioration of the current economic environment, particularly from foreign competition, the Japanese manufacturers, and car market is quite saturated.
Profitability have declined The world's largest paint and coatings manufacturers?? Akzo Nobel said the company's third quarter results just paint to achieve the basic growth so that the company concerned is the United States and British architectural paints and coatings market demand is decline. The third quarter's Decoration Performance coatings and coatings business, revenue increased by only 5% year on year.
World's second largest paint and coatings manufacturer PPG Industries recently said third quarter net profit fell 39% to 117 million U.S. dollars, but sales rose 37% to 42 billion dollars. According to the company explained that a sharp third-quarter sales growth is mainly due to the company in January of this year to complete the funding of 32 million European paint manufacturer SigmaKalon Group (SigmaKalon) acquisition.
World's third largest paint and coatings manufacturers Shandwick (Sherwin-Williams) third-quarter net profit decreased by 12% to 177 million U.S. dollars, sales revenue rose 3% to 2.3 billion. Relatively small number of other global manufacturers profitability also declined. Australian architectural paint manufacturer Watts (Wattyl) as of September 30 for the fiscal first quarter revenue fell 5.5%.
Industry mergers and acquisitions remain active
According to industry analysts say, the global paint and coatings industry, M & A activity, compared with the past few years there has been lower, but still continued to be active. Paint manufacturers will shift to the acquisition of some small companies, and those with proprietary technology or production company.
Akzo Nobel completed earlier this year reached 18.1 billion U.S. dollars worth of the company's acquisition of the ICI, the deal prompted the company's decorative coatings business in sales of 2.3 billion euros from the previous / year increased substantially to 5.3 billion euros / years.
PPG Industries completed in January this year, the European paint manufacturer SigmaKalon Group is still actively seeking acquisitions after the merger and acquisition opportunities. The company recently acquired a Bonnie Paint Co., Ltd. Guangzhou, China automotive paint polishing business. The transaction expands the field of PPG's product offerings, and expand its distribution network and customer base. The company will also have access to car polish paint industry and other sectors. Auto Cash Hijack Review and Coupon Discount Acquiring a Employed Auto With Very low Miles May Not Be a Great Concept Tips to Cut Teenager Car Insurance Some Easy Tips to Obtain The Excellent Florida Car Insurance Quotes Tips for Finding Cheap Car Insurance India Autobiography of william shakespeare Texas Automobile Insurance coverage Needs Bad Credit Auto Financing When You've Got To Have A Car Back Injury Compensation Claims How You Can Find the Best Deals for Sports Car Insurance Proof of Car Insurance Card Greased Lightning automotive products that solve problems An insight on International Auto shipping