Here is a good example of how changes in demand in one industry can have an effect on both sales and profits in another. Dutch company, Azko Nobel, the world’s largest paint maker and owner of the Dulux brand, today announced a 23% fall in profits to €367m. They plan to make 3,500 of their 43,000 workers redundant worldwide. Business is being affected by the end of the international boom in residential and commercial property construction which has led to a fall in market demand for decorative paints. So a slump in the building industry - with many housing projects being shelved - is impacting on paint sales. Furthermore, profits are also being squeezed by a rise in the costs of raw materials used in manufacturing paint.
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