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AkzoNobel publishes Q1 2016 results

Pressmeddelande   •   Apr 19, 2016 08:00 CEST

Please see pdf version of the press release for graphs and tables!

AkzoNobel publishes Q1 2016 results

Growth in volumes and profitability despite challenging markets

  • Growth in volumes and profitability in all Business Areas despite challenging markets
  • Volumes up for all Business Areas and up 2 percent overall
  • Operating income up 17 percent at €357 million (2015: €306 million)
  • EBIT (operating income excluding incidental items)up 9 percent at €334 million (2015: €306 million) reflecting continuous improvement initiatives and lower costs, partly offset by adverse currency effects
  • Revenue down 4 percent due to adverse currency effects, price/mix and divestments
  • Return on sales* improved to 9.7 percent (2015: 8.5 percent) and return on investment* improved to 14.5 percent (2015: 11.5 percent).
  • Adjusted earnings per share up 28 percent at €0.97 (2015: €0.76)
  • Net income attributable to shareholders up 50 percent at €240 million (2015: €160 million)
  • Net cash outflow from operating activities improved to €336million(2015: €622 million)
  • Intended acquisition of BASF’s Industrial Coatings business announced
  • Launched €500 million ten-year bond at a coupon of 1.125 percent in April 2016
  • The market environment remains uncertain with challenging conditions

AkzoNobel today reported its first quarter 2016 results with positive volume developments in all three Business Areas despite a challenging market environment. Operating income increased 17 percent to €357 million and EBIT increased 9 percent to €334 million, reflecting continuous improvement initiatives and lower costs, partly offset by adverse currency effects. Revenue was down 4 percent compared with the same period last year as positive volume development was more than offset by adverse currency effects, price/mix and divestments. Profitability improved, with return on sales at 9.7 percent compared with 8.5 percent last year.

CFO Maëlys Castella:
"During the first quarter we grew volumes in all Business Areas and continued to improve profitability despite a challenging market environment and negative currency effects. Net income improved by 50 percent and we continue to further strengthen our businesses by delivering on our strategy of continuous improvement, organic growth and innovation. During the period we agreed an offer for the acquisition of BASF’s Industrial Coatings division which fits well with our existing business, adding to our offering of essential solutions for our customers.”

Decorative Paints: Operating income increased 4 percent, mainly due to higher volumes and lower costs, partly offset by unfavorable currency developments. Volumes increased 6 percent due to positive developments in Asia and Europe, offset by Latin America. Revenue was down 3 percent, mainly due to unfavorable currency effects and adverse price/mix.

Performance Coatings: Operating income increased 9 percent, due to higher volumes, management delayering, continuous improvement initiatives and lower costs. Volumes were up 2 percent mainly driven by Marine and Protective Coatings. Revenue was down 3 percent, with positive volume development being more than offset by adverse currencies and unfavorable price/mix. The intended acquisition of BASF’s Industrial Coatings business was announced, which will strengthen our position.

Specialty Chemicals: Operating income increased 1 percent, due to operational efficiencies and lower costs offsetting the effects of price deflation and adverse currencies. Volumes were up 1 percent, with positive developments – mainly in Industrial Chemicals – being partly offset by lower demand in oil related segments. Revenue was down 7 percent due to the divestment of the Paper Chemicals business, price deflation and adverse currency effects.

Outlook
The market environment remains uncertain with challenging conditions in several countries and segments. Deflationary pressures and currency headwinds are expected to continue.

The Q1 2016 report can be downloaded via the AkzoNobel Report iPad app http://bit.ly/obljrf or read online at www.akzonobel.com/quarterlyresults.

Not for publication – for more information

Corporate Media Relations
T +31 (0)88 – 969 7833

Contact: Diana Abrahams

Corporate Investor Relations
T +31 (0)88 – 969 7590
Contact: Lloyd Midwinter

Om AkzoNobel

Inom AkzoNobel är vi 45 000 engagerade medarbetare som tillsammans skapar förutsättningar för god livskvalitet och en inspirerande vardag. Vi är ett ledande globalt färgföretag och en stor producent av specialkemikalier som förser företag och konsumenter världen över med såväl färg och ytskydd, som ingredienser till viktiga vardagsprodukter.

Idag är vi verksamma i över 80 länder och vårt huvudkontor ligger i Amsterdam, Nederländerna. Våra innovativa produkter bär på en stolt historia och är skapade för att göra livet enklare för människor i en snabbt föränderlig värld. Bland våra välkända varumärken finns Eka, International, Cuprinol, Jozo och Nordsjö. Vi rankas återkommande som ledande inom hållbarhet i vår bransch och drivs av att bidra till välmående städer och levande samhällen genom att skapa en färgstark och trygg värld där livet blir bättre genom det vi gör.

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