AkzoNobel Q3 2014 results
(Thomson Reuters ONE) -
October 21, 2014
Profit grows following operational efficiencies despite fragile economy
* Operating income totaled ?335 million, boosted by operational efficiency
programs and lower restructuring charges
* Revenue down 2 percent: volume up 1 percent, more than offset by negative
currency effects and divestments
* Return on sales (ROS) at 9.1 percent (2013: 8.0 percent); excluding
restructuring costs of ?55 million (2013: ?75 million), ROS is 10.6 percent
(2013: 10.0 percent)
* Net income attributable to shareholders ?205 million (2013: ?155 million),
due to higher operating income and lower finance expenses
* Adjusted EPS increased 24 percent to ?0.92 (2013: ?0.74)
* Interim dividend of ?0.33 declared
* Net cash inflow from operating activities ?489 million (2013: ?552 million)
* On track to deliver 2015 targets despite the continued fragile economic
environment
Q3 2014 in ? million
Q3 2013 Q3 2014 D%
Revenue 3,778 3,686 (2)
Operating income 303 335 11
Return on sales (ROS) % 8.0 9.1
EBITDA 456 487 7
Net income attributable to shareholders 155 205 32
Year-to-date January - September 2014 in ? million
YTD 2013 YTD 2014 D%
Revenue 11,108 10,779 (3)
Operating income 842 904 7
Return on sales (ROS) % 7.6 8.4
EBITDA 1,305 1,360 4
Net income attributable to shareholders 673 539 (20)
Akzo Nobel N.V. (AkzoNobel) today reported positive volume growth and, for the
fifth consecutive quarter, an improvement in Return on sales (ROS) - from 8.0
percent to 9.1 percent. Excluding restructuring costs of ?55 million, ROS was
10.6 percent (2013: 10.0 percent).
Operating income grew 11 percent to ?335 million (2013: ?303 million),
reflecting the benefits of ongoing operational efficiency programs, although
this was partially offset by new restructuring costs in Performance Coatings.
Net income attributable to shareholders was ?205 million (2013: ?155 million),
due to higher operating income and lower finance expenses. Revenue for the third
quarter declined 2 percent, with volume growth being offset by negative currency
effects and divestments.
CEO Ton Büchner
"AkzoNobel delivered a solid Q3 performance, despite continued economic
uncertainty. Return on sales improved for the fifth consecutive quarter to 9.1
percent, while operating income grew by 11 percent. Conditions continue to be
challenging, but we have a resilient strategy focused on stimulating organic and
sustainable growth. Coupled with the benefits from our ongoing operational
efficiency programs, we are on track to deliver on our 2015 targets.
"Q3 was also notable for several achievements, including being ranked first in
our industry on the Dow Jones Sustainability Index for the third year running.
In addition, our Human Cities initiative gathered momentum when we made a
commitment to the Clinton Global Initiative and partnered with The Rockefeller
Foundation through its 100 Resilient Cities program. We also developed coatings
technology for the world's first fully recyclable and compostable paper cup, and
we broke ground on a new Decorative Paints site in Chengdu, China."
Decorative Paints: Volumes were flat compared with the previous year. Market
conditions in Europe remained challenging, while volumes were higher in Asia.
Revenue declined compared with the previous year, due to the divestment of
Building Adhesives and the adverse price/mix effect driven by the sale of the
German stores. Operating income was higher than 2013 due to lower restructuring
expenses.
Performance Coatings: Volumes were up, while revenue was flat on 2013 as
price/mix and adverse currencies offset higher volumes. Cost control measures
continued in all businesses. The new organizational structure has reduced the
number of global management layers, resulting in higher restructuring costs. As
a result, operating income declined on the previous year.
Specialty Chemicals: Volume for the quarter was in line with 2013, with growth
being offset by some planned outages in the chain, as well as industrial action
in Rotterdam. Revenue declined, due to adverse currency developments and price
pressure in some segments such as in caustic. Despite the economic slowdown,
profitability increased due to benefits from restructuring activities and cost
savings, as well as lower restructuring costs.
Outlook
AkzoNobel is on track to deliver on its 2015 targets despite the continued
fragile economic environment.
Business Area highlights
Decorative Paints
Q3 2013 Q3 2014 D% YTD 2013 YTD 2014 D%
1,136 1,050 (8) Revenue 3,240 2,989 (8)
107 113 6 Operating Income 252 232 (8)
9.4 10.8 ROS % 7.8 7.8
146 150 3 EBITDA 375 347 (7)
Performance Coatings
Q3 2013 Q3 2014 D% YTD 2013 YTD 2014 D%
1,415 1,420 - Revenue 4,204 4,173 (1)
160 135 (16) Operating Income 452 439 (3)
11.3 9.5 ROS % 10.8 10.5
193 170 (12) EBITDA 553 545 (1)
Specialty Chemicals
Q3 2013 Q3 2014 D% YTD 2013 YTD 2014 D%
1,252 1,239 (1) Revenue 3,749 3,689 (2)
107 156 46 Operating Income 327 415 27
8.5 12.6 ROS % 8.7 11.2
185 232 25 EBITDA 557 640 15
The Q3 2014 report can be downloaded via the AkzoNobel Report iPad app
http://bit.ly/obljrf or read online at www.akzonobel.com/quarterlyresults.
- - -
AkzoNobel is a leading global paints 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 50,000 people around the world are
committed to delivering leading products and technologies to meet the growing
demands of our fast-changing world.
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Contact: Diana Abrahams Contact: Sheryl Stokes
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AkzoNobel's growth strategy, future financial results, market positions, product
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should be carefully considered, and it should be understood that many factors
could cause forecasted and actual results to differ from these statements. These
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For a more comprehensive discussion of the risk factors affecting our business
please see our latest annual report, a copy of which can be found on our website
www.akzonobel.com
AkzoNobel Q3 2014 Financial Report:
http://hugin.info/130660/R/1864307/654318.pdf
AkzoNobel Press Release Q3 2014:
http://hugin.info/130660/R/1864307/654321.pdf
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Datum: 21.10.2014 - 07:02 Uhr
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News-ID 345452
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