AkzoNobel full-year and Q4 2014 results
(Thomson Reuters ONE) -
February 12, 2015
Strong underlying performance
Full-year results:
* Revenue down 2 percent: Volume up 1 percent in all Business Areas, more than
offset by currency effects and divestments
* Operating income excluding incidental items was ?1,072 million (2013: ?897
million), up 20 percent
* Operating income of ?987 million up 3 percent, due to higher operating
results and lower
restructuring charges, offset by adverse incidental items
* ROS was 6.9 percent (2013: 6.6 percent); excluding incidentals ROS was 7.5
percent (2013: 6.1 percent)
* Adjusted EPS at ?2.81 (2013: ?2.62)
* Net income attributable to shareholders ?546 million (2013: ?724 million*)
* Total dividend for 2014 proposed at ?1.45 (2013: ?1.45)
* Net cash inflow from operating activities ?811 million (2013: ?716 million)
Q4 results:
* Revenue up 1 percent, with 2 percent favorable currency effects offset by 1
percent lower volumes
* Operating income excluding incidentals was ?169 million (2013: ?55 million)
up 207 percent due to improved operational performance and lower
restructuring charges
* Adjusted EPS at ?0.33 (2013: (?0.01))
Outlook
* On track to deliver 2015 targets
* 2013 includes exceptional items
Q4 2014 in ? million
Q4 2013 Q4 2014 D%
Revenue 3,482 3,517 1
Operating income 116 83 (28)
Operating income excluding incidentals 55 169 207
Return on sales (ROS) % 3.3 2.4
Return on sales (ROS) % excluding incidentals 1.6 4.8
EBITDA 208 330 59
Net income attributable to shareholders 51 7
Full-year 2014 in ? million
FY 2013 FY 2014 D%
Revenue 14,590 14,296 (2)
Operating income 958 987 3
Operating income excluding incidentals 897 1,072 20
Return on sales (ROS) % 6.6 6.9
Return on sales (ROS) % excluding incidentals 6.1 7.5
Moving average ROI (in %) 9.6 10.0
EBITDA 1,513 1,690 12
Net income attributable to shareholders 724 546 (25)
Akzo Nobel N.V. (AkzoNobel) today reported positive volume growth and an
improvement in return on sales (ROS) for the full-year 2014. Excluding
incidentals, ROS was 7.5 percent (2013: 6.1 percent).
Operating income excluding incidentals grew 20 percent to ?1,072 million (2013:
?897 million), reflecting higher benefits from ongoing operational efficiency
programs and lower restructuring charges, offset by higher adverse incidental
items. Contrary to positive incidental items of ?61 million in 2013, mainly
related to gain on divestments, the negative incidental items of ?85 million in
2014 relate to provisions for legacy items, an external fraud suffered by one of
our subsidiaries in the US, and project costs related to a divestment. Net
income attributable to shareholders was ?546 million (2013: ?724 million which
includes exceptional items). Revenue for the full year declined 2 percent, with
volume up 1 percent in all Business Areas, more than offset by negative currency
effects and divestments.
CEO Ton Büchner
"For the full year we achieved further improvements in our operational
performance, visible in our return on sales and return on investment levels. The
introduction of several commercial excellence initiatives will help us drive
organic growth going forward.
"2014 was challenging, evidenced by negative currency effects, a continued lack
of growth in Europe and a slowdown in some of the Asian and Latin American
economies. During the year, we continued to build a solid foundation and remain
on track to deliver on our 2015 targets.
"The year was also notable for several key achievements. A major highlight for
us in 2014 was the launch of our Human Cities initiative and our partnership
with 100 Resilient Cities. We introduced the first carbon credit methodology for
the international shipping industry, which allows ships to generate income in
the form of carbon credits by reducing CO(2) emissions. We were also especially
pleased to be ranked first on the Dow Jones Sustainability Index (in the
Materials industry group) for the third year in a row."
Decorative Paints successfully implemented a new operating model in Europe.
Volumes for the full year were up 1 percent with a positive volume development
in Asia. Revenue declined 6 percent compared with 2013 due to divestments,
adverse currency effects and an adverse price/mix effect. Q4 revenue was down 1
percent, mainly driven by the sale of the German stores, which offset 3 percent
revenue growth in Asia and 6 percent revenue growth in Latin America.
Operational results clearly improved.
Performance Coatings continued to profit from operational improvements and
successfully introduced a new organizational structure with fewer management
layers. Volumes for the full year were up 1 percent, mainly from growth in
Marine and Protective Coatings and Powder Coatings. Revenue was flat compared
with the previous year due to adverse currencies. Q4 revenue was up 4 percent on
2013 due to favorable currencies and price/mix, with 4 percent revenue growth in
Powder Coatings and 8 percent revenue growth in Marine and Protective Coatings.
Specialty Chemicals showed increased volumes and increased its profitability in
2014, the latter due to significant savings from restructuring programs. Volumes
for the full year were up 1 percent. Revenue was 1 percent lower due to
headwinds such as price pressure in caustic, unfavorable currency developments
during the first half of the year and interruptions in supply chain and
manufacturing. Q4 volume was 1 percent down, due to production interruptions in
Rotterdam and market reactions following the large oil price reduction, leading
to destocking. Q4 revenue was in line with the previous year, with the adverse
impact of volumes and divestments being offset by a favorable currency effect.
Outlook
We anticipate that significant developments in raw material prices, combined
with relevant exchange rate movements and lower growth rates in high growth
economies, will principally determine the dynamics of 2015. The preparations
made during 2013 and 2014 will form a sound basis for further improvements in
2015. AkzoNobel remains on track to achieve its targets for 2015.
Business Area highlights
Decorative Paints
Q4 2013 Q4 2014 D% 2013 2014 D%
934 920 (1) Revenue 4,174 3,909 (6)
146 16 (89) Operating income* 398 248 (38)
15.6 1.7 ROS % 9.5 6.3
(13) 58 EBITDA 362 405 12
* Operating income in 2013 was affected by a ?198 million gain from
divestments
Performance Coatings
Q4 2013 Q4 2014 D% 2013 2014 D%
1,367 1,416 4 Revenue 5,571 5,589 -
73 106 45 Operating income 525 545 4
5.3 7.5 ROS % 9.4 9.8
110 142 29 EBITDA 663 687 4
Specialty Chemicals
Q4 2013 Q4 2014 D% 2013 2014 D%
1,200 1,194 (1) Revenue 4,949 4,883 (1)
(30) 93 Operating income** 297 508 71
(2.5) 7.8 ROS % 6.0 10.4
169 175 4 EBITDA 726 815 12
** Operating income in 2013 was affected by ?121 million incidental charges
The report for the full year and Q4 2014 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. Calling on centuries of expertise, we supply industries
and consumers worldwide with innovative products and sustainable technologies
designed to meet the growing demands of our fast-changing planet. Headquartered
in Amsterdam, the Netherlands, we have approximately 47,000 people in around 80
countries, while our portfolio includes well-known brands such as Dulux,
Sikkens, International, Interpon and Eka. Consistently ranked as one of the
leaders in the area of sustainability, we are committed to making life more
liveable and our cities more human.
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AkzoNobel Full-Year and Q4 2014 results Financial Report:
http://hugin.info/130660/R/1893845/671199.pdf
AkzoNobel Full-Year and Q4 2014 results Press Release:
http://hugin.info/130660/R/1893845/671198.pdf
AkzoNobel Full-Year and Q4 2014 results Infographic:
http://hugin.info/130660/R/1893845/671200.pdf
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Datum: 12.02.2015 - 07:01 Uhr
Sprache: Deutsch
News-ID 371088
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