AkzoNobel publishes Q4 and full-year results
(Thomson Reuters ONE) -
February 16, 2012
* 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
Full-year 2011 in ? million
FY 2010 FY 2011 D%
Revenue 14,640 15,697 7
EBITDA 1,964 1,796 (9)
EBITDA margin (in %) 13.4 11.4
Net income continuing operations 664 469
Q4 2011 in ? million
Q4 2010 Q4 2011 D%
Revenue 3,620 3,787 5
EBITDA 377 301 (20)
EBITDA margin (in %) 10.4 7.9
Net income continuing operations 130 (62)
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.
Business Area highlights in ? million
Decorative Paints
4(th) Quarter Full Year
2010 2011 D% 2010 2011 D%
1,139 1,204 6 Revenue 4,968 5,296 7
63 11 (83) EBITDA 548 440 (20)
5.5 0.9 EBITDA margin (in %) 11.0 8.3
Performance Coatings
4(th) Quarter Full Year
2010 2011 D% 2010 2011 D%
1,238 1,326 7 Revenue 4,786 5,170 8
147 141 (4) EBITDA 647 611 (6)
11.9 10.6 EBITDA margin (in %) 13.5 11.8
Specialty Chemicals
4(th) Quarter Full Year
2010 2011 D% 2010 2011 D%
1,259 1,285 2 Revenue 4,943 5,335 8
221 207 (6) EBITDA 939 906 (4)
17.6 16.1 EBITDA margin (in %) 19.0 17.0
Sustainability highlights
AkzoNobel has made significant progress on its strategic sustainability agenda.
Once again, a number two position was achieved in the SAM benchmark in 2011. For
tables please see the pdf version of the press release.
Outlook for 2012 and medium-term ambitions
AkzoNobel aspires to be the world's leading coatings and specialty chemicals
company. The medium-term ambitions are to grow to ?20 billion in revenue,
increase EBITDA each year while maintaining a 13 to 15 percent margin, reduce
OWC percent of revenue year-on-year by 0.5 percent towards a 12 percent level,
and pay a stable to rising dividend.
The sustainability ambitions are to remain a top three leader in our industry,
to be top quartile in our peer group in terms of safety performance, diversity,
employee engagement and development, and eco-efficiency improvement rates.
During 2011 the business faced many challenges, most notably the rapid price
increases that affected most of our raw materials and the continuing economic
headwinds in many of our major markets.
For the year ahead, the company expects to see the full-year benefit of the
price rises that have been achieved so far, and which have now offset most of
the raw material price increases. Currently, AkzoNobel is experiencing greater
price stability in most raw materials, with the exception of TiO(2), which is to
continue to rise in price, and for which plans are in place to pass through
further price rises in the future. In addition, the company is implementing its
performance improvement program, which should bring significant benefits in
2012 and beyond, underpinning margins. As a result, close to 800 employees have
been made redundant.
The major uncertainty remains the economic environment. The concerns are focused
on the risk of recession in Europe, delayed recovery of the US property market
and the potential for a slowdown in China. Each of these can have a significant
impact on customers in these regions that would in turn impact AkzoNobel's sales
volumes.
These, together with certain raw materials, remain the key sensitivities in
2012.
AkzoNobel has a strong portfolio of complementary businesses, with many leading
market positions and exposure to high growth markets. This, combined with
ongoing management actions, means that the company is confident of delivering
medium-term growth in line with its strategic ambitions.
The 2011 Q4 and full year report can be read on
www.akzonobel.com/quarterlyresults.
- - -
AkzoNobel is the largest global paint and coatings company and a major producer
of specialty chemicals. We supply industries and consumers worldwide with
innovative products and are passionate about developing sustainable answers for
our customers. Our portfolio includes well known brands such as Dulux, Sikkens,
International and Eka. Headquartered in Amsterdam, the Netherlands, we are a
Global Fortune 500 company and are consistently ranked as one of the leaders in
the area of sustainability. With operations in more than 80 countries, our
55,000 people around the world are committed to excellence and delivering
Tomorrow's Answers Today(TM).
Not for publication - for more information
Corporate Media Relations, tel. +31 20 502 7833 Corporate Investor
Relations, tel. +31 20 502 7854
Contact: Tim van der Zanden Contacts: Jonathan
Atack and Ivar Smits
AkzoNobel Report for the year 2011 and Q4:
http://hugin.info/130660/R/1586230/497063.pdf
Pdf file AkzoNobel press release Q4 and FY 2011:
http://hugin.info/130660/R/1586230/497266.pdf
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Akzo Nobel NV via Thomson Reuters ONE
[HUG#1586230]
Unternehmensinformation / Kurzprofil:
Datum: 16.02.2012 - 07:03 Uhr
Sprache: Deutsch
News-ID 115336
Anzahl Zeichen: 9409
contact information:
Town:
Amsterdam
Kategorie:
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