AkzoNobel: Growth in volumes and profitability despite challenging markets
(Thomson Reuters ONE) -
April 19, 2016
AkzoNobel publishes Q1 2016 results
Akzo Nobel N.V. (AKZA.AS; AKZOY)
* Growth in volumes and profitability in all Business Areas despite
challenging markets
* Volumes up for all Business Areas and up 2 percent overall
* Operating income up 17 percent at ?357 million (2015: ?306 million)
* EBIT (operating income excluding incidental items) up 9 percent at ?334
million (2015: ?306 million) reflecting continuous improvement initiatives
and lower costs, partly offset by adverse currency effects
* Revenue down 4 percent due to adverse currency effects, price/mix and
divestments
* Return on sales* improved to 9.7 percent (2015: 8.5 percent) and return on
investment* improved to 14.5 percent (2015: 11.5 percent)
* Adjusted earnings per share up 28 percent at ?0.97 (2015: ?0.76)
* Net income attributable to shareholders up 50 percent at ?240 million (2015:
?160 million)
* Net cash outflow from operating activities improved to ?336 million (2015:
?622 million)
* Intended acquisition of BASFs Industrial Coatings business announced
* Launched ?500 million ten-year bond at a coupon of 1.125 percent in April
2016
* The market environment remains uncertain with challenging conditions
AkzoNobel today reported its first quarter 2016 results with positive volume
developments in all three Business Areas despite a challenging market
environment. Operating income increased 17 percent to ?357 million and EBIT
increased 9 percent to ?334 million, reflecting continuous improvement
initiatives and lower costs, partly offset by adverse currency effects. Revenue
was down 4 percent compared with the same period last year as positive volume
development was more than offset by adverse currency effects, price/mix and
divestments. Profitability improved, with return on sales at 9.7 percent
compared with 8.5 percent last year.
CFO Maëlys Castella:
"During the first quarter we grew volumes in all Business Areas and continued to
improve profitability despite a challenging market environment and negative
currency effects. Net income improved by 50 percent and we continue to further
strengthen our businesses by delivering on our strategy of continuous
improvement, organic growth and innovation. During the period we agreed an offer
for the acquisition of BASF's Industrial Coatings division which fits well with
our existing business, adding to our offering of essential solutions for our
customers."
Q1 2016 in ? million
Q1 2015 Q1 2016 delta %
Revenue 3,591 3,430 (4)
Operating income 306 357 17
EBIT (operating income excl. incidentals) 306 334 9
Return on sales (ROS) %* 8.5 9.7
Net income attributable to shareholders 160 240 50
* ROS% is EBIT divided by revenue
Moving average ROI% is EBIT divided by 12 months average invested capital
Decorative Paints: Operating income increased 4 percent, mainly due to higher
volumes and lower costs, partly offset by unfavorable currency developments.
Volumes increased 6 percent due to positive developments in Asia and Europe,
offset by Latin America. Revenue was down 3 percent, mainly due to unfavorable
currency effects and adverse price/mix.
Performance Coatings: Operating income increased 9 percent, due to higher
volumes, management delayering, continuous improvement initiatives and lower
costs. Volumes were up 2 percent mainly driven by Marine and Protective
Coatings. Revenue was down 3 percent, with positive volume development being
more than offset by adverse currencies and unfavorable price/mix. The intended
acquisition of BASF's Industrial Coatings business was announced, which will
strengthen our position.
Specialty Chemicals: Operating income increased 1 percent, due to operational
efficiencies and lower costs offsetting the effects of price deflation and
adverse currencies. Volumes were up 1 percent, with positive developments -
mainly in Industrial Chemicals - being partly offset by lower demand in oil
related segments. Revenue was down 7 percent due to the divestment of the Paper
Chemicals business, price deflation and adverse currency effects.
Business Area highlights in ? million
Decorative Paints
Q1 2015 Q1 2016 delta%
Revenue 890 861 (3)
Operating income 50 52 4
EBIT (operating income excl. incidentals) 50 52 4
ROS %* 5.6 6.0
Performance Coatings
Q1 2015 Q1 2016 delta%
Revenue 1,430 1,388 (3)
Operating income 170 186 9
EBIT (operating income excl. incidentals) 170 186 9
ROS %* 11.9 13.4
Specialty Chemicals
Q1 2015 Q1 2016 delta%
Revenue 1,296 1,206 (7)
Operating income 163 164 1
EBIT (operating income excl. incidentals) 163 164 1
ROS %* 12.6 13.6
Outlook
The market environment remains uncertain with challenging conditions in several
countries and segments. Deflationary pressures and currency headwinds are
expected to continue.
The Q1 2016 report can be downloaded via the AkzoNobel Report iPad app
http://bit.ly/obljrf or read online at www.akzonobel.com/quarterlyresults.
* ROS% is EBIT divided by revenue
Moving average ROI% is EBIT divided by 12 months average invested capital
- - -
AkzoNobel creates everyday essentials to make people's lives more liveable and
inspiring. As a leading global paints and coatings company and a major producer
of specialty chemicals, we supply essential ingredients, essential protection
and essential color to industries and consumers worldwide. Backed by a
pioneering heritage, our innovative products and sustainable technologies are
designed to meet the growing demands of our fast-changing planet, while making
life easier. Headquartered in Amsterdam, the Netherlands, we have approximately
45,000 people in around 80 countries, while our portfolio includes well-known
brands such as Dulux, Sikkens, International, Interpon and Eka. Consistently
ranked as a leader in sustainability, we are dedicated to energizing cities and
communities while creating a protected, colorful world where life is improved by
what we do.
Not for publication - for more information
Corporate Media Relations Corporate Investor Relations
T +31 (0)88 - 969 7833 T +31 (0)88 - 969 7590
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
Q1 2016 Report:
http://hugin.info/130660/R/2004554/740187.pdf
Infographic Q1 2016 Results:
http://hugin.info/130660/R/2004554/740192.pdf
Media Release Q1 2016 Results:
http://hugin.info/130660/R/2004554/740242.pdf
CFO Maëlys Castella:
http://hugin.info/130660/R/2004554/740188.jpeg
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(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 GlobeNewswire
[HUG#2004554]
Unternehmensinformation / Kurzprofil:
Datum: 19.04.2016 - 07:00 Uhr
Sprache: Deutsch
News-ID 464738
Anzahl Zeichen: 10326
contact information:
Town:
Amsterdam
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 301 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"AkzoNobel: Growth in volumes and profitability despite challenging markets"
steht unter der journalistisch-redaktionellen Verantwortung von
Akzo Nobel NV (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
