Skip to main content

AkzoNobel publishes Q2 2016 results

Pressmeddelande   •   Jul 19, 2016 08:00 CEST

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


Continued volume growth with improved profitability across all Business Areas

A strong adverse currency impact

Akzo Nobel N.V. (AKZA.AS; AKZOY)

  • Volumes up 1 percent, driven by Decorative Paints and Performance Coatings
  • EBIT (operating income excluding incidental items) up 9 percent at €491 million (2015: €452 million), reflecting continuous improvement initiatives and lower costs, partly offset by adverse currency effects
  • Revenue down 6 percent to €3.7 billion, strongly adversely affected by currencies
  • Return on sales* improved to 13.2 percent (2015: 11.4 percent); return on investment* improved to 15.1 percent (2015: 12.2 percent). ROS and ROI improved for all Business Areas
  • Adjusted earnings per share (EPS) up 2 percent at €1.32 (2015: €1.30)
  • Net income attributable to shareholders up at €312 million (2015: €331 million, which included positive incidental items)
  • Net cash inflow from operating activities up at €453 million (2015: €407 million)
  • Launched €500 million ten year bond at a coupon of 1.125 percent in April 2016
  • Further de-risking of UK pension liabilities
  • Outlook: The market environment remains uncertain with challenging conditions in several countries and segments. Deflationary pressures and currency headwinds are expected to continue

AkzoNobel today reported a second quarter with positive developments in profitability in all three Business Areas, despite currency pressures and a challenging market environment. EBIT increased 9 percent to €491 million. Overall volumes improved by 1 percent, although this increase was not reflected in Q2 revenue, which was down 6 percent at €3.7 billion, strongly affected by currencies. Return on sales improved to 13.2 percent and return on investment was up at 15.1 percent.

CEO Ton Büchner:
"During the quarter we increased volumes while improving profitability across all Business Areas, showing the ongoing resilience of our business. The market environment in 2016 remains uncertain, with challenging conditions in several countries and segments. Deflationary pressures and currency headwinds are expected to continue. Our ongoing focus will remain on driving continuous improvement and organic growth across our Business Areas.

We were delighted to open our largest technology center in China, which will support product innovation and the development of next-generation paints, coatings and specialty chemicals. We were also ranked number one in our industry on the influential FTSE4GOOD index of sustainable companies, reinforcing our commitment to embedding sustainability at the heart of our business strategy."

Decorative Paints:
Positive developments in Asia contributed to an increase in volumes and also drove an improvement in EBIT which was up 2 percent. These gains were more than offset by unfavorable currency effects. Volumes continued to be down in Latin America and slightly lower in Europe, with overall revenue down 7 percent. We launched our Unexpected Courts project in Rio de Janeiro, Brazil. It involves using paint in an imaginative way to create areas where children are inspired to try out different sports, such as basketball, hockey and volleyball in surprising places.

Performance Coatings:
Demand trends differed per region, with higher volumes being more than offset by adverse currencies. This resulted in a revenue decrease of 5 percent. Higher volumes, continuous improvement initiatives and lower costs contributed to an increase in EBIT, although this was limited to 1 percent due to unfavorable currencies. We completed phase one of the expansion of our protective coatings facility in Cikarang, Indonesia. The expansion will increase capacity at the facility by 40 percent and will help us to meet growing domestic demand.

Specialty Chemicals:
Volumes were flat overall, with positive developments in some segments balanced out by lower demand in oil-related segments. Revenue was down 7 percent, mainly due to the divestments of Paper Chemicals in 2015, adverse currency effects and price deflation in several segments. EBIT rose 10 percent due to operational efficiencies and lower costs. Our Expancel Microspheres gained approval from the US Food and Drug Administration as a constituent in wine corks. The product helps to ensure wines are kept as perfect as possible and can be enjoyed as intended.

The Q2 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
Contact: Diana Abrahams
T +31 (0)88 – 969 7833

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

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.

Bifogade filer

PDF-dokument

Kommentarer (0)

Lägg till kommentar

Kommentera