By Robin van Daalen
AMSTERDAM-- Akzo Nobel NV said Thursday that first-quarter net
profit was up 45% on lower financing costs, while revenue fell 2%
because of currency losses and despite higher volumes in all of its
businesses.
Net profit for the first three months of the year was EUR129
million ($178 million) compared with EUR89 million a year
earlier.
Akzo Nobel, one of the world's leading paint and coatings
makers, said revenue slipped to EUR3.38 billion from EUR3.47
billion a year earlier. While rising volumes and higher priced
goods added 4% to sales, foreign exchange rates had a negative
impact of 5%.
Under the leadership of Chief Executive Ton Büchner, Akzo Nobel
set new financial targets for 2015 and accelerated plans to further
streamline the paints and chemicals group.
Akzo Nobel, best known for paint brands such as Dulux and
Sikkens, said it remains on track to reach its 2015 financial
targets. It aims to achieve a 9% return on sales, a 14% return on
invested capital and a net debt to earnings before interest, taxes,
depreciation and amortization ratio lower than 2.0.
"These results are a further step towards the delivery of Akzo
Nobel's 2015 targets," Chief Financial Officer Keith Nichols said.
"Despite higher restructuring charges, continued adverse currency
effects and ongoing weakness in Europe, our year-on-year return on
sales, both before and after higher restructuring charges, improved
for the third consecutive quarter."
Akzo Nobel's return on sales rose to 6.4% in the first quarter,
from 6.3% in the first quarter of 2013. Excluding restructuring
costs, its operating margin stood at 7.7%, up from 7.1%.
Write to Robin van Daalen at Robin.VanDaalen@wsj.com
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