AkzoNobel publishes Q2 2015 results
(Thomson Reuters ONE) -
July 21, 2015
AkzoNobel continues to improve performance
* Operating income up 38 percent at ?486 million (2014: ?353 million)
* Revenue up 6 percent to ?3.9 billion, mainly driven by favorable currency
effects
* Improved performance with return on sales at 12.3 percent (2014: 9.5
percent); and
return on investments at 11.7 percent (2014: 10.1 percent)
* Net income attributable to shareholders up 61 percent at ?331 million (2014:
?205 million)
* Adjusted earnings per share (EPS) up 37 percent at ?1.30 (2014: ?0.95)
* Net cash inflow from operating activities at ?407 million (2014: ?393
million)
* Divestment of Paper Chemical business completed
* Triennial review ICI Pension Fund (UK) completed in July, 2015
* On track to deliver 2015 targets
Akzo Nobel N.V. (AKZA.AS; AKZOY) today reported a second quarter with positive
developments in profitability of all three Business Areas despite a challenging
market environment.
Second quarter operating income increased 38 percent to ?486 million, reflecting
the positive effects of efficiency programs, lower costs, reduced restructuring
expenses, divestment results and favorable currency rates. Revenue of ?3,949
million was up 6 percent compared with the same period last year due to
favorable currency rates, offset by divestments and lower volumes in some areas.
The divestment of Paper Chemicals was completed in line with the strategy of
pruning the portfolio. The triennial review with the trustees of the ICI Pension
Fund (UK) was completed in July, 2015. Market trends in North America continued
to be positive with Europe not improving. Conditions remained challenging in
many countries, including in Russia, Brazil and China. Return on sales improved
to 12.3 percent and return on investments was up at 11.7 percent. AkzoNobel
remains on track to deliver its 2015 targets.
CEO Ton Büchner:
"We continue to deliver on our aim to improve the performance of our company.
This will position us well to make the most of future opportunities and growth.
The second quarter continued to show the positive impact of our focus on
profitability and leadership in sustainability. The global economy remains
challenging and shows a very mixed picture with different dynamics per region
and customer segments. We remain on track to deliver our 2015 targets."
Q2 2015 in ? million
Q2 2014 Q2 2015 delta %
Revenue 3,710 3,949 6
Operating income 353 486 38
Return on sales (ROS) % 9.5 12.3
EBITDA 509 610 20
Net income attributable to shareholders 205 331 61
H1 2015 in ? million
H1 2014 H1 2015 delta %
Revenue 7,093 7,540 6
Operating income 569 792 39
Return on sales (ROS) % 8.0 10.5
EBITDA 873 1,072 23
Net income attributable to shareholders 334 491 47
Decorative Paints achieved a solid growth in profitability, with operating
income increased by 25 percent and revenue up 6 percent. Operating income showed
improvement with an increase of 25 percent, due to the new operating model,
lower costs, reduced restructuring expenses, strict cost containment and
favorable currency developments. Revenue was up 6 percent, mainly driven by
favorable currency effects. Volumes for the second quarter were up in Asia,
while volumes were down for Europe and Latin America.
Performance Coatings benefited from cost reductions created through performance
improvement initiatives, margin management activities, manufacturing
productivity and favorable currencies which resulted in an increase of operating
income of 24 percent. Revenue was up 8 percent across all reporting units,
benefiting from favorable currencies and a higher demand for premium products.
Volumes declined mainly due to lower capital and maintenance spending in the
global oil and gas industry. Russia, Brazil and China remain challenging.
Specialty Chemicals operating income increased by 55 percent (31 percent
excluding incidental items related to the divestment of Paper Chemicals
business). The results were supported by the increase of production at the new
Frankfurt plant, operational efficiencies throughout the business and favorable
currency developments. Revenue was up 5 percent due to continued favorable
currency effects, partly offset by the impact of the divested Paper Chemicals
business. Volumes overall were flat. Growth in some segments compensated for
lower demand in oil drilling segments. North America continued to show a
positive trend while growth in Asia was subdued and demand remained weak in
Europe and South America.
Outlook
Exchange rate movements, positive market trends in North America and no
improvement for Europe overall, as well as lower growth rates in many countries,
including Russia, Brazil and China, are determining the dynamics of 2015. Our
significant actions taken in recent years form a sound basis for further
improved performance. We are on track to deliver our targets for 2015*.
Business Area highlights in ? million
Decorative Paints
Q2 2014 Q2 2015 delta % H1 2014 H1 2015 delta %
1,074 1,134 6 Revenue 1,939 2,024 4
102 128 25 Operating income 119 178 50
9.5 11.3 ROS % 6.1 8.8
141 165 17 EBITDA 197 253 28
Performance Coatings
Q2 2014 Q2 2015 delta % H1 2014 H1 2015 delta %
1,434 1,550 8 Revenue 2,753 2,980 8
178 220 24 Operating income 304 390 28
12.4 14.2 ROS % 11.0 13.1
212 257 21 EBITDA 375 463 23
Specialty Chemicals
Q2 2014 Q2 2015 delta % H1 2014 H1 2015 delta %
1,228 1,290 5 Revenue 2,450 2,586 6
124 192 55 Operating income 259 355 37
10.1 14.9 ROS % 10.6 13.7
204 243 19 EBITDA 408 485 19
* Overall targets for the full year 2015 are 9.0 percent return on sales and
14.0 percent return on investment
The Q2 2015 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. 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 46,000 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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T +31 (0)20 - 502 7833 T +31 (0)20 - 502 7854
Contact: Diana Abrahams Contact: Lloyd Midwinter
Safe Harbor Statement
This press release contains statements which address key issues such as
AkzoNobel's growth strategy, future financial results, market positions, product
development, products in the pipeline and product approvals. Such statements
should be carefully considered, and it should be understood that many factors
could cause forecasted and actual results to differ from these statements. These
factors include, but are not limited to, price fluctuations, currency
fluctuations, developments in raw material and personnel costs, pensions,
physical and environmental risks, legal issues, and legislative, fiscal, and
other regulatory measures. Stated competitive positions are based on management
estimates supported by information provided by specialized external agencies.
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
Picture Ton Büchner, CEO AkzoNobel:
http://hugin.info/130660/R/1940041/700319.jpg
Q2 2015 Report:
http://hugin.info/130660/R/1940041/700316.pdf
AkzoNobel Press Release Q2 2015 results:
http://hugin.info/130660/R/1940041/700318.pdf
Infographic (Q2 2015):
http://hugin.info/130660/R/1940041/700317.pdf
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Source: Akzo Nobel NV via GlobeNewswire
[HUG#1940041]
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Datum: 21.07.2015 - 07:01 Uhr
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News-ID 407937
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