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Home  > Markets & companies  > Coatings market  > AkzoNobel: losses running into billions

Monday, 16 September 2019
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Markets & companies, Coatings market

AkzoNobel: losses running into billions

Thursday, 21 February 2013

AkzoNobel wrote down EUR 2.17 billion on its decorative-paint operations last year, as the company overestimated market growth.

Specifically the decorative paints operations in Europe faced weaker demand and have led to the billion-mark-loss for AkzoNobel. Source: Kirchhoff/Pixelio.de
Specifically the decorative paints operations in Europe faced weaker demand and have led to the billion-mark-loss for AkzoNobel. Source: Kirchhoff/...

AkzoNobel plunged into the red in 2012 after an impairment charge of EUR 2.17 billion on its decorative paints business in the third quarter. "Specifically our decorative paints operations in Europe faced weaker demand, so we stepped up restructuring efforts in the region in the fourth quarter,” CEO Ton Büchner said. "The economic environment remains challenging and we expect no fundamental changes in the trends that we have seen recently in our businesses,” he added. The company has accelerated its previously announced restructuring program, and announced a new set of financial targets to be achieved by the end of 2015.  

Revenue for the year was up 5 % at EUR 15.4 billion driven by favourable currencies and pricing, which was partly offset by a decline in volumes. And earnings before interest, tax, depreciation and amortisation for the year rose 4 % to EUR 1.9 billion helped by the performance improvement programme, which contributed EUR 276 million to EBITDA. Buechner set new targets including a 9 % operating margin and a 14 % return on investment by the end of 2015.

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