AkzoNobel publishes Q4 and full-year results

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

• 2011 revenue up 7 percent to €15.7 billion, driven mainly by pricing actions
• Weaker end markets and cost inflation impacted results
• 2011 EBITDA 9 percent lower at €1.8 billion
• Net income from continuing operations €469 million (2010: €664 million)
• Adjusted EPS €2.91 (2010: €3.71)
• Total dividend for 2011: increase to €1.45 proposed (2010: €1.40)
• Performance improvement program on track
• Economic environment and certain raw materials remain key sensitivities in 2012

Akzo Nobel N.V. (AkzoNobel) today published Q4 and full-year results for 2011. The company reported revenue growth across all Business Areas, led by price/mix developments of 5 percent and a 2 percent volume increase.

CEO Hans Wijers
“2011 was a challenging year against the background of weaker global economic conditions and unprecedented raw material price inflation. The absolute impact of increased raw material prices for the year was approximately €1 billion. Despite this significant headwind, our reported pricing actions have now offset most of this, and for the year ahead we expect to see the full-year benefit of these increases. In addition, to further reduce our cost base and improve our competitiveness, we recently launched a performance improvement program, which is on track. Our strong fundamentals, geographical spread and commitment to deliver – in combination with the improvement program – give us confidence in the future.”

Performance improvement program
AkzoNobel’s performance improvement program, launched in October 2011, will strengthen competitiveness, enhance the company’s ability to grow, simplify support structures and significantly reduce the cost base. This implies a significant change in the operating model and business culture. The comprehensive three-year plan – designed to improve performance and deliver €500 million EBITDA in 2014 – is already expected to deliver €200 million EBITDA in 2012. This implies higher restructuring costs for the coming year. Restructuring activities continue in Decorative Paints in Europe and the US. The program is on track and the first update on progress and financial impact is due in the company’s 2012 half-yearly report.

The 2011 Q4 and full year report can be read on www.akzonobel.com/quarterlyresults.

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