AkzoNobel publishes Q4 and full-year 2016 results
(Thomson Reuters ONE) -
February 15, 2017
Volume growth and record profitability in 2016
Akzo Nobel N.V. (AKZA.AS; AKZOY)
Full-year:
* Delivering on our strategy with volume growth and record profitability in
2016
* Volume growth in Decorative Paints and Specialty Chemicals; flat in
Performance Coatings
* Revenue down 4% due to unfavorable currency and price/mix effects
* EBIT(1) up 3% at ?1,502 million (2015: ?1,462 million), positively impacted
by volume growth, continuous improvement and lower costs
* Record profitability: Return on sales(2) increased to 10.6% (2015: 9.8%) and
return on investment(2) improved to 15.0% (2015: 14.0%)
* Adjusted earnings per share up 3% at ?4.15 (2015: ?4.02)
* Total dividend proposed for 2016 up 6.5% to ?1.65 per share (2015: ?1.55)
* Net cash inflow from operating activities up 14% at ?1,297 million (2015:
?1,136 million)
* Acquisition of BASF's Industrial Coatings business completed
* Ongoing investments in new capacity to support organic growth including in
the US, UK, China and India
* Sustainable innovation: Revenue from eco premium(3) solutions reached 20%
Outlook: In 2017 AkzoNobel anticipates positive developments for EMEA, North
America and Asia, improving during the year, while Latin America is expected to
stabilize. Some economic and political uncertainty is expected to remain. Market
trends experienced in the second part of 2016, including for the marine and oil
& gas industries, are expected to continue in the first half 2017.
AkzoNobel has structurally improved its ability to respond to developments in
its markets and is taking appropriate measures to deal with higher raw material
prices in an inflationary environment. This stronger operational and financial
foundation means AkzoNobel is more agile and better able to seize growth
opportunities, including acquisitions. AkzoNobel maintains its financial
guidance for 2016-2018.
CEO Ton Büchner:
"We achieved record levels of profitability in 2016 and are making further steps
in delivering on our strategy of continuous improvement and growth.
"Our financial discipline also improved cash generation and our current share
buyback program reinforces our confidence in this moving forward.
"We have structurally improved our ability to respond to developments in our
markets and are better able to seize growth opportunities, including
acquisitions. We completed the purchase of the BASF Industrial Coatings business
in December 2016.
"We continued to invest to support growth, with new plants and research
facilities in the US, UK, China and India.
"Throughout the year we introduced more innovative new products, advanced our
digital agenda and made significant steps in sustainability with higher levels
of revenue from our eco premium solutions. Our Human Cities program - everything
we do for and with society - positively impacted millions of people around the
world.
"We are now a stronger, more agile company, with excellent brands, a growing
global presence and a solid financial and operational foundation. We maintain
our financial guidance for 2016-2018."
Full-year 2016 in ? million
FY 2015 FY 2016 Delta %
Revenue 14,859 14,197 (4)
EBIT(1) 1,462 1,502 3
Return on sales (ROS) %(2) 9.8 10.6
Return on investment (ROI) %(2) 14.0 15.0
Net income attributable to shareholders 979 970 (1)
Q4 2016 in ? million
Q4 2015 Q4 2016 Delta %
Revenue 3,559 3,456 (3)
EBIT(1) 268 235 (12)
Return on sales (ROS) %(2) 7.5 6.8
Net income attributable to shareholders 203 133* (34)
* Mainly due to lower incidental items compared to 2015
Decorative Paints: Full-year volumes were up 3% overall with positive
developments in Asia and EMEA, while volumes in Latin America were down.
Positive volumes were more than offset by unfavorable currency effects and
adverse price/mix. Revenue was down 4%. The company won a key award for its wet
color tester in the Netherlands; it is now being rolled out into other markets,
part of ongoing efforts to help consumers make more confident color choices.
Performance Coatings: Full-year volume was flat as growth in some segments was
offset by adverse conditions in the marine and oil & gas industries. Demand
trends differed per segment and region. Revenue was down 5%, driven by adverse
currencies and price/mix effects. AkzoNobel's Vehicle Refinishes business
launched Colorvation digital technology, a unique system to increase speed and
accuracy in color matching for body shops, maximizing productivity and
profitability.
Specialty Chemicals: Full-year volumes were up 1%, with positive developments,
mainly driven by Asia and Europe. Revenue was down 4% with positive volume
developments more than offset by price deflation in several markets. Continuing
the focus on growth markets, AkzoNobel inaugurated two new plants in Ningbo,
China, and announced a further facility in Tianjin. The company also announced a
joint venture with Atul to set up a monochloroacetic acid plant in India.
Continuous improvement
AkzoNobel is on track with a multi-year program to transform its global
functions into a standard operating model to better support the business to
drive growth and innovation. In addition, 75% of the company's manufacturing
sites have now deployed the AkzoNobel Leading Performance System (ALPS),
designed to increase productivity and performance.
Acquisition
AkzoNobel completed the acquisition of BASF's Industrial Coatings business in
the fourth quarter. This business is expected to generate sales of around ?280
million in 2017. It strengthens the company's position as the global number one
supplier in coil coatings, and gives it a full-service offering for the
protection and maintenance of wind turbines. The deal includes manufacturing
plants in the UK and South Africa.
Sustainability, Human Cities and Innovation
AkzoNobel led a unique partnership with Google, Philips and DSM to jointly
source power from renewable energy projects in the Netherlands. It also
introduced an essential ingredient, Dissolvine M-40, to help detergent
manufacturers meet strict environmental regulations. The company's Human Cities
initiatives helped regenerate areas around the world, including Rotterdam,
Shanghai, China, Quito, Ecuador; and Montevideo, Uruguay, making people's lives
more liveable and inspiring.
Business Area highlights in ? million
Decorative Paints
Q4 2015 Q4 2016 Delta% FY 2015 FY 2016 Delta%
931 898 (4) Revenue 4,007 3,835 (4)
46 51 11 EBIT(1) 345 357 3
4.9 5.7 ROS %(2) 8.6 9.3
Performance Coatings
Q4 2015 Q4 2016 Delta% FY 2015 FY 2016 Delta%
1,482 1,398 (6) Revenue 5,955 5,665 (5)
192 152 (21) EBIT(1) 792 759 (4)
13.0 10.9 ROS %(2) 13.3 13.4
Specialty Chemicals
Q4 2015 Q4 2016 Delta% FY 2015 FY 2016 Delta%
1,167 1,169 - Revenue 4,988 4,783 (4)
90 118 31 EBIT(1) 578 629 9
7.7 10.1 ROS %(2) 11.6 13.2
More information on our financial guidance can be found on
www.akzonobel.com/about-us/strategy
1. Operating income excluding incidental items.
2. ROS% is EBIT divided by revenue. Moving average ROI% is 12 months EBIT
divided by 12 months average invested capital
3. Eco premium solutions and services deliver environmental or social benefits
for our customers when compared with competitive products
The Q4 2016 report can be viewed and downloaded at
www.akzonobel.com/quarterlyresults.
- - -
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
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 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: 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.
Infographic Q4 and full year results:
http://hugin.info/130660/R/2078690/782484.pdf
PDF Media Release:
http://hugin.info/130660/R/2078690/782475.pdf
Q Report:
http://hugin.info/130660/R/2078690/782478.pdf
CEO Ton Büchner:
http://hugin.info/130660/R/2078690/782479.jpg
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: 15.02.2017 - 07:01 Uhr
Sprache: Deutsch
News-ID 524186
Anzahl Zeichen: 12563
contact information:
Town:
Amsterdam
Kategorie:
Business News
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