Akzo Nobel Says Drop in 3Q Ebit, Revenue Due to Industry Headwinds
October 18 2017 - 2:02AM
Dow Jones News
By Oliver Griffin
Paint and specialty chemicals company Akzo Nobel N.V. (AKZA.AE)
on Wednesday reported a 13% drop in third-quarter adjusted earnings
before interest and tax, citing industry headwinds and unfavorable
foreign-exchange conditions.
The Dutch company, which owns brands including Dulux, Sikkens
and Interpon, said that adjusted Ebit, the company's operating
income excluding certain items, for the quarter ended Sept. 30 was
383 million euros ($450.6 million) down from EUR442 million in the
year earlier period. Revenue rose 1% to EUR3.62 billion.
The company also reported that net profit dropped to EUR216
million from EUR285 million in the year-earlier period.
The company said that Ebit for 2017 is now expected to be in
line with that of 2016, due to adverse foreign-exchange conditions,
industry headwinds, and supply chain disruptions that included the
adverse impact of Hurricane Harvey in the U.S.
The company said sales volumes were up 2%, driven by decorative
paints and performance coatings.
Akzo Nobel said it was implementing various measures to mitigate
current market challenges, including increased selling prices and
additional cost control, and also said it had started phase one of
a transformation plan to deliver EUR110 million annual savings in
2018.
Write to Oliver Griffin at oliver.griffin@dowjones.com
(END) Dow Jones Newswires
October 18, 2017 01:47 ET (05:47 GMT)
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