|
|
Global Top 10 Companies Financial Report
Author: Alex
The global coating industry had a good start 2010, particularly in high growth markets, but remained "cautious" about the recovery. The earlier outlook was on the surface more positive cautioned that market demand remained soft. Major commercial construction is still at a standstill, the results particularly show where current strengths lie in faster growing markets such as Asia rather than in Europe or North America. Decorative paints volumes in Asia grew by 30% (by 40% in China) year on year in the first quarter. Decorative paints sales were up 7% with a 5% increase in volume. Performance coatings volumes were up 8% in the first quarter compared with a year ago, but in that quarter were off 20%. Prices were down 1%. The only weaker spot mentioned was marine maintenance activity. Coatings prices in the first quarter this year were down 3% year on year. Revenues were stable in the mature markets. The major European economies appear only to be recovering slowly.
Akzo Nobel, the global paint and coatings leader, also pleased with better than expected first quarter results and that interest had been shown in the National Starch business it acquired when it bought ICI. Akzo Nobel can still make consolidation gains following its acquisition of ICI and said the closure and integration of "multiple sites" across Europe was running according to plan. That's about as encouraging as it gets for most company which can well see the likelihood of a slowdown.
All show that while strong gains are being made, a great deal of business activity is still below pre-recession levels. Operating margins were stronger in the quarter despite a harsh winter in the northern hemisphere and a weak commercial property market. Growth looks stronger but there is still a long way to go.
Global coating consumption in 2009 is to total 20.54 billion litres, worth $93billion. Coating volume is down some 2% from 2009; value will be off even more owing to declining prices and dollar exchange rates which are currently less favorable than prior years. As highlighted in Table 1, the Asia-Pacific region is the only one forecast to have positive growth in 2009. The mature economies in the region (Japan, South Korea, and Taiwan) have volume declines in 2009; China and India have modest growth. Asia-Pacific is the largest coating user taking 40% of the 2009 global consumption.
The report starts with giving brief profile for the global coating, including general information and main economic indicators. Further, the report provides in-depth analyses of materials market in the company. The aim of this study is to provide a tool for these companies in making correct decisions as how to penetrate the market and how to catch the maximum commercial opportunities.
Table 1
GLOBAL COATING CONSUMPTION（Billion Liter）
Region |
2008 |
2009 |
%AGR |
Asia-Pacific |
8.16 |
8.23 |
1 |
Europe |
4.91 |
4.64 |
-6 |
North America |
4.85 |
4.50 |
-7 |
Latin America |
1.61 |
1.57 |
-2 |
Russia |
0.73 |
0.66 |
-10 |
Rest of World |
1.01 |
0.94 |
-7 |
TOTAL |
21.27 |
20.54 |
-2 |
Table 2
2009 Global Sales (US$ Bn) – Coatings
|
Construction |
Assembly |
Packaging |
Transportation |
Other |
Total |
Coatings |
53.0 |
25.1 |
2.3 |
11.2 |
1.4 |
93.0 |
57.0% |
27.0% |
2.5% |
12.0% |
1.5% |
|
2009 Top 10
| 1. AKZONOBEL |
$15.13 billion |
| 2. PPG Industries |
$11.36 billion |
| 3. Sherwin-Williams |
$7.01billion |
| 4. DUPONT |
$4.64 billion |
| 5. BASF |
$4.12 billion |
| 6. VALSPAR |
$3.11 billion |
| 7. US Diamond Paints |
$2.56 billion |
| 8. SACAL |
$2.40 billion |
| 9. Nippon Paints |
$2.27 billion |
| 10.RPM Inc |
$2.02 billion |
|
|
|