AkzoNobel reports record profitability in Q1 2017
(Thomson Reuters ONE) -
April 19, 2017
Full-year EBIT expected to be around ?100 million higher than 2016
Akzo Nobel N.V. (AKZA.AS; AKZOY)
* Record profitability, with higher EBIT(1), return on sales (ROS)(2 )and
return on investment (ROI)(3)
* Revenue up across all Business Areas and 7% overall, mainly due to higher
volumes and acquisitions
* Volumes up 4% driven by Decorative Paints and Specialty Chemicals
* EBIT up in all Business Areas and 13% overall, at ?376 million (2016: ?334
million), reflecting the positive effects of volume growth, continuous
improvement and cost discipline
* Full-year EBIT expected to be around ?100 million higher than 2016,
excluding any substantial changes in market conditions
* Profitability improved, with ROS at 10.3% (2016: 9.7%) and ROI at 15.2%
(2016: 14.5%)
* Adjusted earnings per share up 8% at ?1.05 (2016: ?0.97)
* Net cash outflow from operating activities improved to ?287 million (2016:
?336 million)
* ?150 million share repurchase program underway: ?144 million completed up to
March 31, 2017
* A strategy update including further details of the proposed separation of
Specialty Chemicals will follow today at 08.00 CET
Outlook: AkzoNobel continues to anticipate positive developments for EMEA, North
America and Asia, improving during the year, while Latin America is expected to
stabilize. Market trends experienced in the second part of 2016, including for
the marine and oil and gas industries, are expected to continue during the first
half of 2017.
The company has structurally improved its ability to respond to developments in
its markets and continues taking appropriate measures to deal with higher raw
material prices in an inflationary environment. EBIT for 2017 is expected to be
around ?100 million higher than 2016, as a result of growth momentum and
continuous improvement, assuming no material change in market and economic
dynamics.
CFO Maëlys Castella:
"Our record performance continued this quarter, showing the substantial growth
momentum we have across the business. Significant progress continues across all
our Business Areas, reflecting both our strong customer focus and great
portfolio of brands.
"We remain focused on increasing returns to shareholders, including a ?150
million share repurchase program that began in the quarter.
"We made another industry-leading commitment to sustainability, announcing our
ambition to become carbon neutral by 2050 and use 100% renewable energy.
"Our R&D efforts will be strengthened with a new innovation hub at Felling in
the UK, and we announced more key partnerships for our Human Cities Program
around the world.
"Our strong financial and operational foundation has enabled us to embark on the
next phase of our strategy, with a review of options for the separation of the
Specialty Chemicals business to further unlock value for shareholders. We look
forward to updating the market on our new strategy."
Q1 2017 in ? million
Q1 2016 Q1 2017 Delta %
Revenue 3,430 3,661 7
EBIT(1) 334 376 13
Return on sales (ROS) %(2) 9.7 10.3
Return on investment (ROI) %(3) 14.5 15.2
Net income attributable to shareholders 240 240 -
Decorative Paints: Revenue was up 7%, mainly driven by strong volume growth.
Volumes were up 9%, with positive developments in all regions. Volume
developments were positive for the sixth consecutive quarter. EBIT increased by
48%, mainly as a result of higher revenue and continued focus on cost measures,
while recognizing that Q1 is a seasonally smaller quarter. Communities in more
than 40 countries will benefit from a partnership between AkzoNobel and
MasterPeace, a global peace movement, to paint 100 "Walls of Connection," part
of the company's Let's Colour initiative.
Performance Coatings: Revenue was up 6%, driven by positive volume development
across a number of segments and the acquisition of BASF's Industrial Coatings
business. EBIT was up 1%, with positive development in segments including
Industrial and Powder Coatings and Automotive and Specialty Coatings offsetting
continued weak demand in the marine and oil and gas industries and integration
costs. More than 100 scientists will be brought together in a new ?12.6 million
research and innovation hub in Felling, UK. The facility will focus on
developing protective coatings for the energy, mining, infrastructure and oil
and gas industries.
Specialty Chemicals: Revenue was up 7%, due to positive volume developments in
all business units and regions and favorable currency effects. Volumes were up
5%, with several businesses benefiting from improved market conditions in the
oil drilling, mining, agrochemical and building and construction segments. EBIT
increased by 7%, mainly due to improved volumes and operational efficiencies,
partly offset by price increases which were not yet fully recaptured through
increased selling prices. AkzoNobel's Imagine Chemistry open innovation
challenge generated more than 200 ideas to solve real-life chemistry-related
challenges as well as uncovering sustainable commercial opportunities for the
Specialty Chemicals businesses.
Sustainability: AkzoNobel has committed to accelerating its sustainability
agenda by announcing a new ambition to use 100% renewable energy and become
carbon neutral by 2050. The company was also awarded a top grade on the
Influential Supplier Climate A List for its efforts to combat climate change.
The Dutch government recognized AkzoNobel's latest contribution to meeting
national sustainability targets resulting from investments at its chemicals
complex in Rotterdam.
Human Cities: AkzoNobel joined forces with SOS Children's Villages to drive a
positive impact on youth unemployment including professional training through
the company's painter academies.
More than 200 children in Egypt have benefited from a major renovation of their
school's facilities by AkzoNobel volunteers. The company's Human Cities projects
have touched the lives of more than 9 million people in the past year.
Innovation: AkzoNobel signed an agreement with specialty chemicals company
Itaconix to explore opportunities for the production of bio-based polymers. A
new online tool which can track and certify the amount of bio-based raw
materials in products was launched as a pilot by AkzoNobel and partners. Another
partnership involving AkzoNobel is developing a drone capable of remotely
inspecting enclosed spaces, helping to improve safety in the marine and oil and
gas industries.
Strategic review: We announced a review of strategic options for the separation
of our Specialty Chemicals business. Further details will follow today at 08.00
CET.
Business Area highlights in ? million
Decorative Paints
Q1 2016 Q1 2017 Delta %
Revenue 861 922 7
EBIT(1) 52 77 48
ROS %(2) 6.0 8.4
Performance Coatings
Q1 2016 Q1 2017 Delta %
Revenue 1,388 1,471 6
EBIT(1) 186 187 1
ROS %(2) 13.4 12.7
Specialty Chemicals
Q1 2016 Q1 2017 Delta %
Revenue 1,206 1,289 7
EBIT(1) 164 176 7
ROS %(2) 13.6 13.7
More information on our financial guidance can be found on
www.akzonobel.com/about-us/strategy
1. Operating income excluding identified items.
2. ROS% is EBIT divided by revenue.
3. Moving average ROI% is 12 months EBIT divided by 12 months average invested
capital
The Q1 2017 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.
Q1 2017 Infographic:
http://hugin.info/130660/R/2096615/793389.pdf
Q1 2017 Report:
http://hugin.info/130660/R/2096615/793374.pdf
CFO Maelys Castella:
http://hugin.info/130660/R/2096615/793376.jpeg
Q1 2017 Results Media Release:
http://hugin.info/130660/R/2096615/793375.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:
Bereitgestellt von Benutzer: hugin
" alt="Nutritional High Announces Sale of FLI Cartridges to Nature's Herbs in ColoradoDatum: 19.04.2017 - 07:01 Uhr
Sprache: Deutsch
News-ID 536914
Anzahl Zeichen: 12329
contact information:
Town:
Amsterdam
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 268 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"AkzoNobel reports record profitability in Q1 2017"
steht unter der journalistisch-redaktionellen Verantwortung von
AkzoNobel NV (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
