24th January 2019

AKZONOBEL ANNOUNCES THIRD QUARTER RESULTS

AkzoNobel has released its third-quarter earnings. Volumes were up by two percent in the quarter over last year, the company says, led by its Performance Coatings segment, while revenue was also marginally up by one percent, or 3.62-billion euros (US $4.27-billion), as against 3.6-billion in 2016.

Earnings before interest and tax were down from 442 million euros to 383 million euros. AkzoNobel attributed the drop to unfavorable currencies, temporary disruption to the manufacturing and supply chain caused by Hurricane Harvey, continued problems for marine and protective coatings, and pressure on margins resulting from raw materials cost inflation. The company stated it suffered a direct EBIT impact of 25-million euros related to the hurricane Harvey and other events.

“EBIT for 2017 is now expected to be in line with 2016, due to adverse foreign exchange, ongoing industry specific headwinds and supply chain disruptions, including the adverse impact of Hurricane Harvey in the US,” said CEO Thierry Vanlancker. “We have also initiated phase one of our transformation plan to create a fit-for-purpose Paints and Coatings organization which will deliver 110 million euros of annual savings in 2018 contributing towards our 2020 financial guidance.”

The Q3 release also noted that the separation of the company’s Specialty Chemicals business is still on track to be completed by April 2018.

www.akzonobel.com