AkzoNobel Q2 2016 Results: Continued volume growth with improved profitability across all Business Areas
(Thomson Reuters ONE) -
July 19, 2016
AkzoNobel publishes Q2 2016 results
Continued volume growth with improved profitability across all Business Areas
A strong adverse currency impact
Akzo Nobel N.V. (AKZA.AS; AKZOY)
* Volumes up 1 percent, driven by Decorative Paints and Performance Coatings
* EBIT (operating income excluding incidental items) up 9 percent at ?491
million (2015: ?452 million), reflecting continuous improvement initiatives
and lower costs, partly offset by adverse currency effects
* Revenue down 6 percent to ?3.7 billion, strongly adversely affected by
currencies
* Return on sales* improved to 13.2 percent (2015: 11.4 percent); return on
investment* improved to 15.1 percent (2015: 12.2 percent). ROS and ROI
improved for all Business Areas
* Adjusted earnings per share (EPS) up 2 percent at ?1.32 (2015: ?1.30)
* Net income attributable to shareholders up at ?312 million (2015: ?331
million, which included positive incidental items)
* Net cash inflow from operating activities up at ?453 million (2015: ?407
million)
* Launched ?500 million ten year bond at a coupon of 1.125 percent in April
2016
* Further de-risking of UK pension liabilities
* Outlook: The market environment remains uncertain with challenging
conditions in several countries and segments. Deflationary pressures and
currency headwinds are expected to continue
AkzoNobel today reported a second quarter with positive developments in
profitability in all three Business Areas, despite currency pressures and a
challenging market environment. EBIT increased 9 percent to ?491 million.
Overall volumes improved by 1 percent, although this increase was not reflected
in Q2 revenue, which was down 6 percent at ?3.7 billion, strongly affected by
currencies. Return on sales improved to 13.2 percent and return on investment
was up at 15.1 percent.
CEO Ton Büchner:
"During the quarter we increased volumes while improving profitability across
all Business Areas, showing the ongoing resilience of our business. The market
environment in 2016 remains uncertain, with challenging conditions in several
countries and segments. Deflationary pressures and currency headwinds are
expected to continue. Our ongoing focus will remain on driving continuous
improvement and organic growth across our Business Areas.
We were delighted to open our largest technology center in China, which will
support product innovation and the development of next-generation paints,
coatings and specialty chemicals. We were also ranked number one in our industry
on the influential FTSE4GOOD index of sustainable companies, reinforcing our
commitment to embedding sustainability at the heart of our business strategy."
Q2 2016 in ? million
Q2 2015 Q2 2016 Delta %
Revenue 3,949 3,711 (6)
Operating income 486 491 1
EBIT (operating income excl. incidentals) 452 491 9
Return on sales (ROS) %* 11.4 13.2
Net income attributable to shareholders 331 312 (6)
H1 2016 in ? million
H1 2015 H1 2016 Delta %
Revenue 7,540 7,141 (5)
Operating income 792 848 7
EBIT (operating income excl. incidentals) 758 825 9
Return on sales (ROS) %* 10.1 11.6
Net income attributable to shareholders 491 552 12
Decorative Paints: Positive developments in Asia contributed to an increase in
volumes and also drove an improvement in EBIT which was up 2 percent. These
gains were more than offset by unfavorable currency effects. Volumes continued
to be down in Latin America and slightly lower in Europe, with overall revenue
down 7 percent. We launched our Unexpected Courts project in Rio de Janeiro,
Brazil. It involves using paint in an imaginative way to create areas where
children are inspired to try out different sports, such as basketball, hockey
and volleyball in surprising places.
Performance Coatings: Demand trends differed per region, with higher volumes
being more than offset by adverse currencies. This resulted in a revenue
decrease of 5 percent. Higher volumes, continuous improvement initiatives and
lower costs contributed to an increase in EBIT, although this was limited to 1
percent due to unfavorable currencies. We completed phase one of the expansion
of our protective coatings facility in Cikarang, Indonesia. The expansion will
increase capacity at the facility by 40 percent and will help us to meet growing
domestic demand.
Specialty Chemicals: Volumes were flat overall, with positive developments in
some segments balanced out by lower demand in oil-related segments. Revenue was
down 7 percent, mainly due to the divestments of Paper Chemicals in 2015,
adverse currency effects and price deflation in several segments. EBIT rose 10
percent due to operational efficiencies and lower costs. Our Expancel
Microspheres gained approval from the US Food and Drug Administration as a
constituent in wine corks. The product helps to ensure wines are kept as perfect
as possible and can be enjoyed as intended.
Business Area highlights in ? million
Decorative Paints
Q2 2015 Q2 2016 Delta % H1 2015 H1 2016 Delta%
1,134 1,055 (7) Revenue 2,024 1,916 (5)
128 131 2 Operating income 178 183 3
128 131 2 EBIT (operating income excl. 178 183 3
incidentals)
11.3 12.4 ROS %* 8.8 9.6
Performance Coatings
Q2 2015 Q2 2016 Delta % H1 2015 H1 2016 Delta %
1,550 1,473 (5) Revenue 2,980 2,861 (4)
220 222 1 Operating income 390 408 5
220 222 1 EBIT (operating income excl. 390 408 5
incidentals)
14.2 15.1 ROS %* 13.1 14.3
Specialty
Chemicals
Q2 2015 Q2 2016 Delta % H1 2015 H1 2016 Delta %
1,290 1,206 (7) Revenue 2,586 2,412 (7)
192 179 (7) Operating income 355 343 (3)
162 179 10 EBIT (operating income excl. 325 343 6
incidentals)
12.6 14.8 ROS %* 12.6 14.2
The Q2 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 12 months 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
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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
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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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please see our latest annual report, a copy of which can be found on our website
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Q2 Infographic - AkzoNobel:
http://hugin.info/130660/R/2029240/754490.pdf
Image - AkzoNobel CEO Ton Büchner:
http://hugin.info/130660/R/2029240/754491.jpg
Q2 Report - AkzoNobel:
http://hugin.info/130660/R/2029240/754489.pdf
Image - AkzoNobel CFO Maëlys Castella:
http://hugin.info/130660/R/2029240/754495.jpeg
Media Release - AkzoNobel:
http://hugin.info/130660/R/2029240/754488.pdf
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Source: AkzoNobel NV via GlobeNewswire
[HUG#2029240]
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Datum: 19.07.2016 - 07:01 Uhr
Sprache: Deutsch
News-ID 483903
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Kategorie:
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