AkzoNobel Q3 2015 results - Continued increase in profitability despite challenging market conditions
October 22 2015 - 1:01AM
October 22, 2015
AkzoNobel publishes Q3 2015
results
-
Operating income up 30
percent at €436 million (2014: €335 million)
-
Revenue up 2 percent to
€3.8 billion (2014: €3.7 billion), due to 4 percent favorable
currency effects, offset by divestments and slightly lower
volumes
-
Improved performance with return on sales at 11.6 percent (2014: 9.1 percent);
and
return on investment at 12.5 percent (2014:
10.5 percent)
-
Net income attributable to
shareholders up 39 percent at €285 million (2014: €205
million)
-
Adjusted earnings per share
(EPS) up 35 percent at €1.24 (2014: €0.92)
-
Net cash inflow from operating
activities at €583 million (2014: €489 million)
-
Interim dividend up 6
percent to €0.35 per share (2014: €0.33)
-
Ranked number one on the Dow
Jones Sustainability Index in the Materials industry group
for the fourth consecutive year
-
On track to deliver 2015
targets*
Akzo Nobel N.V. (AKZA.AS; AKZOY)
today reported third quarter results which show positive
developments in profitability in all three Business Areas, despite
a challenging market environment.
Third quarter operating income increased 30
percent to €436 million, reflecting the positive effects of process
optimization, lower costs, reduced restructuring expenses and
favorable currency developments. Revenue of €3,760 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 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."
Q3 2015 in € million
|
Q3 2014 |
Q3 2015 |
delta % |
Revenue |
3,686 |
3,760 |
2 |
Operating
income |
335 |
436 |
30 |
Return on
sales (ROS) % |
9.1 |
11.6 |
|
EBITDA |
487 |
590 |
21 |
Net
income attributable to shareholders |
205 |
285 |
39 |
Year-to-date January - September
2015 in € million
|
YTD
2014 |
YTD
2015 |
delta % |
Revenue |
10,779 |
11,300 |
5 |
Operating
income |
904 |
1,228 |
36 |
Return on
sales (ROS) % |
8.4 |
10.9 |
|
EBITDA |
1,360 |
1,662 |
22 |
Net
income attributable to shareholders |
539 |
776 |
44 |
* Overall targets
for the full-year 2015 are 9.0 percent return on sales and 14.0
percent return on investment
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 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 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.
Business Area highlights in €
million
Decorative Paints |
|
|
|
|
|
Q3 2014 |
Q3 2015 |
delta% |
|
YTD
2014 |
YTD
2015 |
delta% |
1,050 |
1,052 |
- |
Revenue |
2,989 |
3,076 |
3 |
113 |
121 |
7 |
Operating income |
232 |
299 |
29 |
10.8 |
11.5 |
|
ROS % |
7.8 |
9.7 |
|
150 |
159 |
6 |
EBITDA |
347 |
412 |
19 |
Performance Coatings |
|
Q3 2014 |
Q3 2015 |
delta% |
|
YTD
2014 |
YTD
2015 |
delta% |
1,420 |
1,493 |
5 |
Revenue |
4,173 |
4,473 |
7 |
135 |
210 |
56 |
Operating income |
439 |
600 |
37 |
9.5 |
14.1 |
|
ROS % |
10.5 |
13.4 |
|
170 |
246 |
45 |
EBITDA |
545 |
709 |
30 |
Specialty Chemicals |
|
|
Q3 2014 |
Q3 2015 |
delta% |
|
YTD
2014 |
YTD
2015 |
delta% |
1,239 |
1,235 |
- |
Revenue |
3,689 |
3,821 |
4 |
156 |
163 |
4 |
Operating income |
415 |
518 |
25 |
12.6 |
13.2 |
|
ROS % |
11.2 |
13.6 |
|
232 |
242 |
4 |
EBITDA |
640 |
727 |
14 |
The Q3 2015 report can be
downloaded via the AkzoNobel Report iPad app
http://bit.ly/obljrf or read
online at www.akzonobel.com/quarterlyresults.
- - -
AkzoNobel is a leading global
paints and coatings company and a major producer of specialty
chemicals. Calling on centuries of expertise, we supply industries
and consumers worldwide with innovative products and sustainable
technologies designed to meet the growing demands of our
fast-changing planet. Headquartered in Amsterdam, the Netherlands,
we have approximately 46,000 people in around 80 countries, while
our portfolio includes well-known brands such as Dulux, Sikkens,
International, Interpon and Eka. Consistently ranked as one of the
leaders in the area of sustainability, we are committed to making
life more liveable and our cities more human.
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publication - for more information
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Investor Relations |
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Contact:
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Contact:
Lloyd Midwinter |
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such as AkzoNobel's growth strategy, future financial results,
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product approvals. Such statements should be carefully considered,
and it should be understood that many factors could cause
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business please see our latest annual report, a copy of which can
be found on our website www.akzonobel.com
Media release AkzoNobel Q3
results
Infographic (3rd Quarter)
Photo Maëlys Castella CFO Credits: Pierre Buet
Q report (3rd Quarter)
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information contained therein.
Source: Akzo Nobel NV via Globenewswire
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