AkzoNobel Q3 2016 Results: Profitability increased in an environment of mixed volume growth
(Thomson Reuters ONE) -
October 19, 2016
AkzoNobel publishes Q3 2016 results
Profitability increased in an environment of mixed volume growth
Interim dividend increased. Currency headwinds continue
Akzo Nobel N.V. (AKZA.AS; AKZOY)
* Volume growth in Decorative Paints and Specialty Chemicals, while volumes
were flat overall
* Revenue down 4 percent to ?3.6 billion, due to adverse currency and
price/mix effects
* EBIT* up 1 percent at ?442 million (2015: ?436 million), reflecting
continuous improvement initiatives and lower costs, partly offset by adverse
currency effects
* Operating income up 4 percent at ?454 million (2015: ?436 million)
positively impacted by incidental items
* Return on sales** was up at 12.3 percent (2015: 11.6 percent) and return on
investment** improved to 15.2 percent (2015: 13.0 percent). ROS and ROI
improved in all three Business Areas
* Net income attributable to shareholders was ?285 million (2015: ?285
million)
* Adjusted earnings per share (EPS) was ?1.20 (2015: ?1.24)
* Net cash inflow from operating activities up at ?600 million (2015: ?583
million)
* Interim dividend up 6 percent to ?0.37 per share (2015: ?0.35)
* Further de-risking of pension liabilities
* Outlook unchanged: The market environment remains uncertain with challenging
conditions in several countries and segments. Deflationary pressures and
currency headwinds are expected to continue. We maintain our financial
guidance for 2016-2018
AkzoNobel today reported volume growth in Decorative Paints and Specialty
Chemicals with further overall profitability growth in the third quarter,
despite challenging conditions in several countries and segments. EBIT increased
1 percent to ?442 million and return on sales improved to 12.3 percent (2015:
11.6 percent). Overall volumes were flat, and revenue was down 4 percent to ?3.6
billion, due to adverse currency and price/mix effects. Return on investment was
15.2 percent (2015: 13.0 percent).
CFO Maëlys Castella:
"We achieved further growth in profitability in the third quarter, with returns
up for all Business Areas and positive volume developments in Decorative Paints
and Specialty Chemicals. We are delivering on our improvement programs and
maintaining a strong cash discipline. We decided to increase the interim
dividend by 6 percent to ?0.37 per share.
"Our focus remains on driving continuous improvement and organic growth. We
broke ground on a powder coatings plant in Mumbai that will bring us closer to
our customers in the north and west of India. We also introduced innovative
products that bring major sustainability benefits to our customers, including
our Berol DR-B1 direct release surfactant and Aquasilk waterborne wood coating.
Denim Drift was launched as our Color of the Year for 2017."
*Operating income excluding incidental items.
** ROS% is EBIT divided by revenue. Moving average ROI% is 12 months EBIT
divided by 12 months average invested capital.
Q3 2016 in ? million
Q3 2015 Q3 2016 delta %
Revenue 3,760 3,600 (4)
Operating income 436 454 4
EBIT (operating income excl. incidentals) 436 442 1
Return on sales (ROS) %** 11.6 12.3
Net income attributable to shareholders 285 285 -
Year-to-date January - September 2016 in ? million
YTD 2015 YTD 2016 delta %
Revenue 11,300 10,741 (5)
Operating income 1,228 1,302 6
EBIT (operating income excl. incidentals) 1,194 1,267 6
Return on sales (ROS) %** 10.6 11.8
Net income attributable to shareholders 776 837 8
Decorative Paints: Volumes increased 3 percent due to positive developments in
Asia and EMEA, while volumes continued to be lower in Latin America. Revenue was
down 3 percent mainly due to unfavorable currency effects. We launched our 2017
Color of the Year, Denim Drift, part of our ongoing efforts to inspire customers
to make confident color choices and drive growth for our business.
Performance Coatings: Volumes were down by 2 percent affected by adverse
conditions in the marine and oil and gas industries, partly offset by positive
developments in other segments, including automotive and specialty coatings.
Revenue was down 6 percent due to unfavorable currencies, lower volumes and
adverse price/mix effects. The intended acquisition of BASF's Industrial
Coatings business is expected to be completed towards the end of 2016. We broke
ground on a ?9 million powder coatings plant in Mumbai which will bring us
closer to our customers in the north and west of India and will also provide
several innovative lines new to the Indian market.
Specialty Chemicals: Volumes were up 1 percent with positive developments,
especially in Industrial Chemicals, partly offset by lower demand in the oil-
related segments. Revenue was down 3 percent mainly due to price deflation in
several markets. We launched Berol DR-B1, an essential ingredient for outdoor
cleaning products which successfully meets stringent US Environmental Protection
Agency (EPA) standards, without compromising on performance.
Sustainability, Human Cities and Innovation: We achieved several milestones in
the quarter, including: The launch of Aquasilk, a waterborne wood coating that
helps Chinese customers meet strict local environmental standards; an addition
to our award-winning Intersleek marine foul release coating range which
incorporates a bio-renewable raw material; and the signing of a flagship Human
Cities project to help renovate four historic sites in the Jing'an district of
Shanghai.
Business Area highlights in ? million
Decorative Paints
Q3 2015 Q3 2016 delta% YTD 2015 YTD 2016 delta%
1,052 1,021 (3) Revenue 3,076 2,937 (5)
121 132 9 Operating income 299 315 5
121 123 2 EBIT (operating income excl. 299 306 2
incidentals)
11.5 12.0 ROS %** 9.7 10.4
Performance Coatings
Q3 2015 Q3 2016 delta% YTD 2015 YTD 2016 delta%
1,493 1,406 (6) Revenue 4,473 4,267 (5)
210 192 (9) Operating income 600 600 -
210 199 (5) EBIT (operating income excl. 600 607 1
incidentals)
14.1 14.2 ROS %** 13.4 14.2
Specialty
Chemicals
Q3 2015 Q3 2016 delta% YTD 2015 YTD 2016 delta%
1,235 1,202 (3) Revenue 3,821 3,614 (5)
163 168 3 Operating income 518* 511 (1)
163 168 3 EBIT (operating income excl. 488 511 5
incidentals)
13.2 14.0 ROS %** 12.8 14.1
The Q3 2016 report can be viewed and downloaded at
www.akzonobel.com/quarterlyresults.
* Includes a book profit net of related costs of ?30 million in Q2 2015 related
to the divestment of the Paper Chemicals business.
** 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: Andrew Wood 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.
Q3 2016 Results report:
http://hugin.info/130660/R/2049783/766597.pdf
IMAGE CFO Maelys Castella:
http://hugin.info/130660/R/2049783/766599.jpeg
Q3 2016 Infographic:
http://hugin.info/130660/R/2049783/766613.pdf
PDF Media Release Q3 2016 results:
http://hugin.info/130660/R/2049783/766598.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: AkzoNobel NV via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 19.10.2016 - 07:00 Uhr
Sprache: Deutsch
News-ID 501337
Anzahl Zeichen: 12117
contact information:
Town:
Amsterdam
Kategorie:
Business News
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