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Home  > Markets & companies  > Coatings market  > AkzoNobel publishes Q3 2015 results

Sunday, 15 September 2019
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Markets & companies, Coatings market

AkzoNobel publishes Q3 2015 results

Tuesday, 27 October 2015

Akzo Nobel N.V. reported third quarter results which show positive developments in profitability in all three Business Areas, despite a challenging market environment.

AkzoNobel's CFO Maëlys Castella. Source: AkzoNobel

AkzoNobel's CFO Maëlys Castella. Source: AkzoNobel

Third quarter operating income increased 30 percent to EUR436 million, reflecting the positive effects of process optimisation, lower costs, reduced restructuring expenses and favorable currency developments. Revenue of EUR3,760 million was up 2 percent compared with the same period last year, due to favorable currency effects, offset by divestments and slightly lower volumes. Return on sales improved to 11.6 percent, while return on investment rose to 12.5 percent.

CFO AkzoNobel Maëlys Castella:             

"We continue to see the benefits of our ongoing business transformation, including our new organizational structure and focus on operational excellence. During Q3 we saw increased profitability across all three of our Business Areas, despite the challenging market conditions. Our focus on sustainability was recognized as we maintained our number one position on the Dow Jones Sustainability Index for the fourth consecutive year. We remain on track to deliver our 2015 targets."

Decorative Paints

Decorative Paints operating income improved by 7 percent due to the new operating model, lower costs and currency developments. Revenue was flat, with favorable currency effects being offset by adverse price/mix. Volumes were up in Asia, while volumes were down for Latin America and Europe, which includes amongst others Russia and Turkey.

Performance Coatings

Performance Coatings operating income was up 56 percent, driven by cost reductions from performance improvement initiatives, lower costs, favorable product mix, lower restructuring charges and favorable currency developments. Revenue was up 5 percent, benefiting from favorable currencies and continued strong demand for premium products. Volumes declined in the quarter due to ongoing capital spending declines in the global oil and gas industry, and further weakening in some markets, most notably Brazil and China.

Specialty Chemicals

Specialty Chemicals operating income was up 4 percent, supported by the benefits from further increased production at its new Frankfurt plant, lower costs and operational efficiencies throughout the business. Revenue was flat due to favorable currency effects offsetting the impact of the divested Paper Chemicals business and adverse price/mix in several segments. Volumes overall were flat. Growth in some segments compensated for lower demand in oil drilling segments, which mainly impacted Surface Chemistry and Functional Chemicals.

Outlook

The market outlook is unchanged with positive trends in North America and no improvement for Europe overall as well as a challenging environment in some countries, including Russia, Brazil and China. Based on current rates, the positive impact of foreign currencies is expected to moderate in the fourth quarter. We are on track to deliver our 2015 targets.

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