AkzoNobel: Growth in volumes and profitability despite challenging markets
April 19 2016 - 1:00AM
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.
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publication - for more information
Corporate
Media Relations |
Corporate
Investor Relations |
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(0)88 - 969 7833 |
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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 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
CFO Maëlys Castella
Infographic Q1 2016 Results
Media Release Q1 2016 Results
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Source: Akzo Nobel NV via Globenewswire
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