PPG force super Aksu crowned the world paint brother

China Paint Network
News:
you may be wronged, may not be convinced, but a brother change the lord, has become a fact
euro exchange rate fell, the strong rise of the dollar. ppg took the opportunity to
the
of the paint, on the face of it, AkzoNobel (hereinafter referred to as Aksu) did lose a little wrong. There's a lot of luck here. But we have to admit that sometimes luck is also a form of strength. Paint analyst Roger Carr told reporters that Akzo had lost badly. Objectively speaking, PPG's coronation of the world paint is based on 99% strength plus 1% luck. According to the annual report, Akzo's sales revenues declined in 2012, 2013 and 2014, at 15.39 billion euros, 14.59 billion euros and 14.296 billion euros, respectively. PPG's sales revenue increased in 2012, 2013 and 2014 to $13.5 billion, $14.3 billion and $15.4 billion, respectively. On the one hand, PPG continues to buy in the dollar area, revenue growth, on the other hand, Akzo in the acquisition of the move, revenue decline. The gap between the two sides has been decreasing over the years. In 2014, the euro fell to 1.10 against the dollar from 1.36 at the start of the year. PPG finally overtook Akzo, crowned the world's paint brother. Although less than $100 million ahead, it also accounted for a 20 percent rise in the exchange rate. But a brother changes the Lord, has become a fact.
since it has become a fact that a brother has become a master, what are the deep-seated reasons beyond the exchange rate reasons? Akzo and PPG, both based in Asia, are enjoying high growth dividends in Asia, led by China. In addition, Akzo's main business is in Europe and PPG's main business is in the Americas. The U.S. dollar is the world's currency, and if the euro fluctuates too much against the U.S. dollar, the impact on both sides is relatively large. If you're careful enough, you'll also find a phrase that has been repeated in Akzo's 2012, 2013 and 2014 reports - "due to unfavourable exchange rates." In other words, Akzo is well aware that the falling exchange rate of the euro against the dollar is one of the main reasons for the decline in Akzo's income. Unfortunately, Akzo tripped three times in the face of the rock at a negative exchange rate. We do not know what measures the Board of Directors took to avoid a similar situation in 2013 and beyond when Akzo wrote in its 2012 report that revenues had fallen due to adverse exchange rate factors. However, we have seen a decline in annual revenues in 2013 and 2014, and in summarizing the reasons for the decline in annual revenues, the impact of "adverse exchange rates" continues to occur. If the euro fell 20 per cent against the dollar in 2014 as a result of the US economic recovery, causing Akzo to lose its place in the world paint, Akzo would have lost his luck. But with the "adverse exchange rate" impact in the 2012 and 2013 reports, Akzo also lost its paint in 2014 due to falling revenues due to adverse exchange rates. It's not bad luck, it's a mistake, or the effect is too slow. There may be other hidden feelings, but at least in terms of results, Akzo did not take effective measures to curb the decline in revenue, so as to lose the world's paint throne.
although Akzo was tripped three times by a rock against the exchange rate, PPG's pursuit never stopped. Since PPG's acquisition of Italy's Marcalon in 2008, PPG has stepped up its focus on divestitures and expanded in mergers and acquisitions, a focus on coatings that has never stopped. In fact, Akzo's revenue in 2012 grew 5% year-on-year. The continuous decline was in 2013 and 2014. Let's take a look at what happened in both 2013 and 2014 that could have something to do with the change of world paint. In 2013, PPG bought Akzo's loss-making decorative coatings business in North America for $1.1 billion. After the acquisition, PPG's market share in North American decorative coatings overtook Akzo in second place. In 2013, PPG's bid to buy Wiesberger, the world's top 10, was unsuccessful. If the acquisition of Wesberg had been successful, PPG might have been a brother in 2013. Akzo has no big acquisitions, at least not online. Paint analyst Roger Carr told reporters that PPG's ongoing mergers and acquisitions are clearly aimed at growth, but also for the sake of a brother. After PPG's failed bid for Westerber in 2013, the acquisition became more intense in 2014. Akzo is still reckoning with acquisitions and appears to be adjusting. This time really for the paint a brother easy master laid the ambush pen.
March 13, PPG announced the completion of the acquisition of most of the assets of Hi-Temp, a U.S. supplier of high-temperature coatings. Acquisition of coating production technologies to protect carbon steel and stainless steel substrates at extremely high temperatures to further enrich PPG's portfolio of industrial protection andmarine coatings. PPG has also completed the acquisition of Hi-Temp-owned High Temperature Nylon Coatings Technology Co., Ltd., a U.S. supplier of high-temperature coatings. With the acquisition of Hi-Temp and its unique high temperature coating technology, PPG can expand its customer channels to meet more customer needs, including those in the petrochemical industry. Senior Coatings Editor-in-Chief Zhou Changfeng announced in January, 2014 top ten paint acquisition events commented, "PPG looks forward to the acquisition of technology and products for PPG to bring multiplies of growth, and eventually become the world's first paint supplier." In November, PPG acquired Comex, Mexico
largest
of architectural coatings, in a deal valued at $2.3 billion. Established the status of the leader in architectural coatings in Central America. By careful comparison, you'll find that PPG acquired companies in Central and North America in 2013 and 2014. You might think it's a coincidence before you look at the 2014 report, but after seeing the 2014 report, you'd think PPG had predicted the strong rise of the dollar and the decline of the euro before the acquisition. Three months later, PPG and Akzo published their 2014 report, PPG Anti-Akzo. The author has been convinced that PPG's successive acquisitions in the fast-growing North and Central America in 2013 and 2014 were entirely purposeful. Because with the strong rise of the dollar, the dollar against the euro exchange rate conversion advantage, so that PPG in 2014 revenue than Akzo less than 100 million, or 0.6%, is a risk of victory. Global
Network
that the three newly acquired businesses in 2014 contributed about 4% of PPG's sales. It can be said that without these three acquisitions, PPG is still the second, Akzo is still a brother. As a result, PPG's choice to acquire companies in Central and North America in a row was entirely planned and premeditated. In January 2015, the annual report has not yet been published, the author anticipates that PPG this is very likely to change the world paint pattern of the weight of the three acquisitions, its full revenue in China Coatings News exclusive review of the 2014 top 10 paint acquisitions. The annual report released three months later confirmed that PPG's three acquisitions in 2014 were not only planned, premeditated, but also helped PPG become a paint brother and changed the world paint landscape. So why would PPG predict a rise in the dollar and a fall in the euro? Why did PPG choose to make consecutive acquisitions in Central and North America?
is about the dollar, the euro, who is the world's currency brother of the currency war. PPG can see this very clearly and judge it accurately. Although the subprime crisis has slowed the U.S. economy and weakened the dollar's position as the world's currency, the U.S. manufacturing sector has recovered, U.S. shale gas has pulled down world crude oil prices, and the dollar's dominance of the world currency has once again been consolidated. The euro's dream of a world currency has once again come to naught. Akzo is a Dutch company listed in the Netherlands, with annual reports and share prices in euros. PPG is a U.S. company that lists in the U.S. and its annual report and share price are in U.S. dollars. And the U.S. dollar is the world's
, the world'
coatings enterprises, sales revenue ranking in the unit is the U.S. dollar. In recent years, the recovery of U.S. manufacturing and the development of shale gas have led to the strong rise of the dollar, which eventually led to a rise of more than 20 percent against the euro in 2014. To absorb the after-effects of the subprime crisis, the Fed has repeatedly offered QE3 and issued additional dollars. As the world's currency, the U.S. dollar has declined for several years, and its dominance in the world monetary system has weakened to some extent. The euro, which has been quietly developing under the dollar, has become the world's second-largest currency, but the European Central Bank's plans to replace the dollar's international currency status with the euro have never stopped. As it happens, Greece's economic crisis has helped the dollar a lot. After the European debt crisis, Europe by virtue of the European Free Trade Area unified euro trading, and gradually to the border of Asia, Africa and other regions radiation, hoping to gradually establish the euro's status as the world's currency, so that the European economy out of the shadow of the European debt crisis.
the Greek economic crisis, the economy is on the verge of collapse, making the European Central Bank in a dilemma. If the European Central Bank rescues Greece, there will be a hang-out of the euro's fall. If Greece is not rescued, it will leave the European Union and the euro zone, and the rest of the world will leave. The euro's dream of becoming the world's currency was dashed, and decades of effort were in vain. The European Central Bank chose to let the dream last a while, allocating money to save Greece, but also chose the after-effects of the euro's decline. As the subprime crisis was digested, the United States revived manufacturing, vigorously developed shale gas, and exported a large number of alternative oil, resulting in international oil prices continue to fall below new lows, the strong rise of the dollar, the world's currency dominance. Zhou Changfeng believes that the dollar world currency will not be replaced by the euro, may not be expected by Akzo. Otherwise, they can't see anything effective other than to mention in their annual report that their income is falling because of the adverse exchange rate. But this must be expected of PPG. That's why PPG has chosen the dollar zone for successive acquisitions and Central and North America. What is needed is a currency dividend from this world currency and a dividend from the US economic recovery. In 2015, PPG completed two more acquisitions to bring a brother to the throne. In April, PPG acquired French suppliers of automotive sealants, adhesives and dampers, REVOCOAT, and Food®Australia, a provider of specialty wood colorants and coating additive solutions for production and distribution in Australia. This time PPG did not choose the location of the merger, in the Americas, probably because it did not want to put eggs in a basket. After all, the euro has bottomed out and Europe's economy is recovering. Akzo, which has lost a seat, has lost a third of its debt and remains static in its acquisitions, seemingly adjusting something.
PPG took advantage of the rising trend of the dollar exchange rate, mergers and acquisitions in the dollar zone, anti-super, which in itself is a kind of wisdom, courage and strength. Losing to such an opponent, Akzo is really not wrong.