AkzoNobel successfully delivers on 2015 targets
February 10 2016 - 1:00AM
February 10, 2016
Akzo Nobel N.V. (AKZA.AS; AKZOY)
Full-year results 2015
A record year,
with return on sales at 10.6 percent and
return on investment at 15.0 percent.
Net debt/EBITDA at 0.6
-
Total dividend proposed for
2015 up 7 percent at €1.55 (2014: €1.45)
-
Operating income up 59
percent at €1,573 million, as a result of process optimization,
lower costs, reduced restructuring expenses, favorable currency
development and incidental items
-
Revenue up 4 percent to
€14,859 million (2014: €14,296 million), due to 6 percent favorable
currency effects, partly offset by divestments and lower
volumes
-
Adjusted earnings per share
(EPS) up 43 percent at €4.02 (2014: €2.81)
-
Net income attributable to
shareholders up 79 percent at €979 million (2014: €546
million)
-
Net cash inflow from operating
activities up 40 percent at €1,136 million (2014: €811
million)
-
Ranked number one on the
Dow Jones Sustainability Index in the Materials industry
group
-
2016 expected to be a
challenging year
AkzoNobel today reported fourth
quarter and full-year results including the successful delivery on
2015 financial targets. Full-year operating income increased 59
percent to €1,573 million (excluding incidentals up 36 percent at
€1,462 million), as a result of process optimization, lower costs,
reduced restructuring expenses, favorable currency developments and
incidental items. The company was recognized as a leader in the
field of sustainability by the Dow Jones Sustainability Index (the
Materials industry group) for the fourth year in a row.
CEO Ton Büchner:
"We successfully achieved our 2015
financial targets in what was a record year for AkzoNobel in a
number of areas including return on sales, return on investment and
sustainability. The proposed increase of the total dividend is also
a clear sign that we are more confident about our cashflow
generation.
Looking ahead, we expect 2016 to
be a challenging year and anticipate limited support from the
markets in which we operate. We will continue to build on our
foundation of operational excellence, adding organic growth and
innovation to the next phase of our strategy, creating everyday
essentials to make lives more liveable and inspiring."
Performance on our 2015
targets
|
2015
target |
2015
result |
2015
results
excl. incidentals |
Return on
sales (ROS) % |
9.0 |
10.6 |
9.8 |
Return on
investments (ROI) % |
14.0 |
15.0 |
14.0 |
Net
debt/EBITDA |
<2.0 |
0.6 |
0.6 |
Full-year 2015 in €
million
|
FY 2014 |
FY 2015 |
delta % |
Revenue |
14,296 |
14,859 |
4 |
Operating
income |
987 |
1,573 |
59 |
Operating
income excl. incidental items |
1,072 |
1,462 |
36 |
Return on
sales (ROS) % |
6.9 |
10.6 |
|
Return on
sales (ROS) % excl. incidental items |
7.5 |
9.8 |
|
EBITDA |
1,690 |
2,088 |
24 |
Net
income attributable to shareholders |
546 |
979 |
79 |
Q4 2015 in € million
|
Q4 2014 |
Q4 2015 |
delta % |
Revenue |
3,517 |
3,559 |
1 |
Operating
income |
83 |
345 |
316 |
Operating
income excl. incidental items |
168 |
268 |
60 |
Return on
sales (ROS) % |
2.4 |
9.7 |
|
Return on
sales (ROS) % excl. incidental items |
4.8 |
7.5 |
|
EBITDA |
330 |
426 |
29 |
Net
income attributable to shareholders |
7 |
203 |
|
Decorative
Paints: Full-year operating income increased by 39 percent as a
result of the new operating model, lower costs, reduced
restructuring expenses and currency developments. Revenue was up 3
percent due to favorable currencies offsetting adverse price/mix
and volumes. Volumes were down 1 percent overall for the full-year,
with positive developments in Asia offset by Latin America and
Europe.
Performance
Coatings: Full-year operating income was up 45 percent, due to
performance improvement initiatives, management delayering, lower
costs, reduced restructuring expenses and currencies. Revenue was
up 7 percent, driven by favorable price/mix and currencies
offsetting lower volumes. Volumes were down 2 percent across the
segments, impacted by lower demand in Brazil and ongoing spending
declines in the global oil and gas industry.
Specialty
Chemicals: Full-year operating income was up 20 percent due to
continuous improvement programs, favorable currency effects, lower
costs and incidental items. Revenue was up 2 percent due to
favorable currency effects, partly offset by the divestment of the
Paper Chemicals business and adverse price effects. Overall volumes
were flat.
Business Area highlights in €
million
Decorative Paints |
|
|
|
|
|
Q4 2014 |
Q4 2015 |
delta% |
|
FY 2014 |
FY 2015 |
delta% |
920 |
931 |
1 |
Revenue |
3,909 |
4,007 |
3 |
16 |
46 |
188 |
Operating income |
248 |
345 |
39 |
1.7 |
4.9 |
|
ROS % |
6.3 |
8.6 |
|
58 |
83 |
43 |
EBITDA |
405 |
495 |
22 |
Performance Coatings |
|
Q4 2014 |
Q4 2015 |
delta% |
|
FY 2014 |
FY 2015 |
delta% |
1,416 |
1,482 |
5 |
Revenue |
5,589 |
5,955 |
7 |
106 |
192 |
81 |
Operating income |
545 |
792 |
45 |
7.5 |
13.0 |
|
ROS % |
9.8 |
13.3 |
|
142 |
229 |
61 |
EBITDA |
687 |
938 |
37 |
Specialty Chemicals |
|
|
Q4 2014 |
Q4 2015 |
delta% |
|
FY 2014 |
FY 2015 |
delta% |
1,194 |
1,167 |
(2) |
Revenue |
4,883 |
4,988 |
2 |
93 |
91 |
(2) |
Operating income |
508 |
609 |
20 |
7.8 |
7.8 |
|
ROS % |
10.4 |
12.2 |
|
175 |
171 |
(2) |
EBITDA |
815 |
898 |
10 |
Outlook
We expect 2016 to be a challenging year. Difficult market
conditions continue in Brazil, China and Russia. No significant
improvement is anticipated in Europe, particularly in the Buildings
and Infrastructure segment. Deflationary pressures continue
and currency tailwinds are moderating.
More information on our financial guidance for
2016-2018 can be found on www.akzonobel.com.
The Q4 and full-year 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 45,000 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
Corporate
Media Relations |
Corporate
Investor Relations |
T +31
(0)88 - 969 7833 |
T +31
(0)88 - 969 7854 |
Contact:
Diana Abrahams |
Contact:
Lloyd Midwinter |
Safe Harbor Statement
This press release contains statements which address key issues
such as AkzoNobel's growth strategy, future financial results,
market positions, product development, products in the pipeline and
product approvals. Such statements should be carefully considered,
and it should be understood that many factors could cause
forecasted and actual results to differ from these statements.
These factors include, but are not limited to, price fluctuations,
currency fluctuations, developments in raw material and personnel
costs, pensions, physical and environmental risks, legal issues,
and legislative, fiscal, and other regulatory measures. Stated
competitive positions are based on management estimates supported
by information provided by specialized external agencies. For a
more comprehensive discussion of the risk factors affecting our
business please see our latest annual report, a copy of which can
be found on our website www.akzonobel.com
Media release AkzoNobel Q4 and
Full-Year results
Report Q4 and Full-Year results
Photo Ton Büchner
Infographic Q4 FY
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Source: Akzo Nobel NV via Globenewswire
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