AkzoNobel publishes Q2 2011 results

Akzo Nobel N.V. (AkzoNobel) today announced revenue growth of 5 percent for the second quarter of 2011, driven by volume and price.

While the overall top-line development has remained strong, the demand pattern has been volatile during the quarter, particularly in the mature markets. High growth markets have continued to perform strongly overall.

As already reported towards the end of the quarter, the escalation of raw material costs, estimated to be around 20 percent higher year-on-year has impacted performance for the second quarter. Furthermore, there were several prolonged large site maintenance stops resulting in higher costs.

Consequently, EBITDA was €551 million, 10 percent below the level of last year for the quarter. EBITDA margin remained at a healthy 13.4 percent level.

• Revenue up 8 percent to €4.1 billion, driven by volume and pricing, before currency headwind of 3 percent

• Raw material inflation, challenging trading conditions and one-off factors lowered the quarter’s EBITDA to €551 million (2010: €614 million)

• Total net income at €268 million (2010: €273 million)

• Adjusted EPS (earnings per share) at €1.09 (2010: €1.18)

• Additional performance improvement measures underway

• Full-year 2011 EBITDA to be at least in line

The Report for the second quarter of 2011 can be read on www.akzonobel.com/quarterlyresults.