AkzoNobel publishes Q2 results
(Thomson Reuters ONE) -
July 19, 2012
* Revenue up 8 percent to ?4.41 billion, mainly driven by pricing actions and
by favorable currency effects
* Volumes declined 2 percent, primarily due to the economic slowdown in Europe
* EBITDA margin 13.5 percent (2011: 13.4 percent)
* Net income from continuing operations ?197 million (2011: ?251 million), due
to higher incidental charges
* Adjusted EPS ?1.12 (2011: ?1.09)
* Performance improvement program on track
* The economic environment remains the principal sensitivity in 2012
Q2 2012 in ? million
Q2 2011 Q2 2012 D%
Revenue 4,097 4,406 8
EBITDA 551 593 8
EBITDA margin (in %) 13.4 13.5
Net income continuing operations 251 197
H1 2012 in ? million
H1 2011 H1 2012 D%
Revenue 7,859 8,378 7
EBITDA 988 1,016 3
EBITDA margin (in %) 12.6 12.1
Net income continuing operations 383 267
Akzo Nobel N.V. (AkzoNobel) today reported an 8 percent increase in second
quarter revenue compared with the same period in 2011, mainly driven by pricing
actions to offset higher raw material costs and currency effects. The EBITDA for
Q2 was 8 percent higher at ?593 million. The company also announced that its
global performance improvement program is making good progress.
Decorative Paints achieved a revenue increase of 6 percent in the second
quarter, mainly due to favourable price/mix effects and positive currency
effects. EBITDA was down 8 percent, reflecting weaker European market
conditions. Restructuring continues in mature markets, particularly in Europe.
In Performance Coatings, revenue increased 12 percent, supported by margin
management, acquisitions and currency effects. EBITDA was up 25 percent compared
with the previous year, further supported by improvements in operational
efficiency. Volume declined, although there was significant variability between
individual activities.
Specialty Chemicals revenue was up 6 percent, supported by margin management,
the Boxing Oleochemicals acquisition and currency effects. EBITDA was 16 percent
higher, reflecting improved margins and continued cost restructuring. Volumes
were 2 percent below the previous year, reflecting a slowdown in most businesses
in the quarter.
Raw materials
AkzoNobel continued to see inflation in the overall raw materials portfolio,
although less than last year. The main driver of input cost inflation is TiO(2).
In the second quarter, the company has seen an increase in supply from China and
a reduction in global demand. However, in total, the company continues to expect
an increased average cost for the year.
Performance improvement program
The performance improvement program announced in October 2011 is making good
progress. Conceptually, it consists of three main building blocks, operational
professionalization, functional standardization and business unit specific
adaptations. Operational professionalization addresses issues such as product
complexity reduction, procurement, manufacturing and distribution excellence,
and margin management. Business unit adaptations and operational
professionalization are expected to contribute around 90 percent of the expected
2012 benefits of ?200 million, while functional standardization will primarily
be an important enabler. The combined cost of the program in the first half year
equals ?90 million, booked under incidentals. The benefits of the program
included in the first half year results, both in contribution margin and in cost
savings, equal ?65 million. Since the announcement of the program, around 1,000
people have left the company, of which around 800 left in 2012. The program is
on track, with the main benefits for 2012 occurring in the second half of the
year.
CEO Ton Büchner
"The overall performance in our Q2 results is solid given the increasingly
difficult economic environment. In my first few months as CEO, I have spent a
great deal of time with our customers, employees and shareholders, and have also
visited many of our factories around the world. My initial observations are that
we have solid businesses and many strong market positions. The opportunity
remains to increase return on capital, cash generation and margins, which is why
the immediate priority for me and the leadership team is performance
improvement."
Outlook
The economic environment remains our principal sensitivity. The concerns are
focussed on the risk of recession in Europe, delayed recovery of the US property
market and the potential of a slowdown in Asia. AkzoNobel will be providing a
strategic update upon the publication of the Q3 results.
Business area highlights
Decorative Paints
Q2 2011 Q2 2012 D% H1 2011 H1 2012 D%
1,461 1,551 6 Revenue 2,657 2,793 5
191 175 (8) EBITDA 281 251 (11)
13.1 11.3 EBITDA margin (in %) 10.6 9.0
Performance Coatings
Q2 2011 Q2 2012 D% H1 2011 H1 2012 D%
1,312 1,472 12 Revenue 2,549 2,841 11
170 213 25 EBITDA 313 377 20
13.0 14.5 EBITDA margin (in %) 12.3 13.3
Specialty Chemicals
Q2 2011 Q2 2012 D% H1 2011 H1 2012 D%
1,350 1,431 6 Revenue 2,701 2,830 5
220 255 16 EBITDA 461 490 6
16.3 17.8 EBITDA margin (in %) 17.1 17.3
The Q2 video interview with CEO Ton Büchner will be online from 07.30 CET at
www.youtube.com/AkzoNobel.
The 2012 Q2 report can be downloaded via the AkzoNobel Report iPad app
http://bit.ly/obljrf or read online at 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
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
Contact: Tim van der Zanden
Corporate Investor Relations, tel. +31 20 502 7854
Contacts: Jonathan Atack and Ivar Smits
Pdf file AkzoNobel Q2 2012 press release:
http://hugin.info/130660/R/1627775/521033.pdf
AkzoNobel Q2 2012 Report:
http://hugin.info/130660/R/1627775/521037.pdf
This announcement is distributed by Thomson Reuters on behalf of
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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#1627775]
Unternehmensinformation / Kurzprofil:
Datum: 19.07.2012 - 07:02 Uhr
Sprache: Deutsch
News-ID 166718
Anzahl Zeichen: 8701
contact information:
Town:
Amsterdam
Kategorie:
Business News
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