Dulux owner AkzoNobel saw its balance sheet painted red in 2012, as fewer people redecorated their homes across Europe.
While revenues for the year rose 5%, the struggling paints and chemicals group today revealed an operating loss of €1.7 billion (£1.5 billion) for last year, largely due to a €2.5 billion writedown on its decorative paints division in October.
Chief executive Ton Büchner announced the long-awaited turnaround strategy, saying the firm “will focus on customer service and operational excellence, creating value for all our stakeholders”.
The firm said it was on track to complete cost-cutting measures worth €500 million this year, a year earlier than forecast, and planned to downsize the management team.
But Büchner warned: “The economic environment remains challenging and we expect no fundamental changes in the trends that we have seen recently in our businesses.”
The firm sold its struggling North American decorative paints arm to United States rival PPG Industries in December for $1.1 billion (£711 million).
