AkzoNobel publishes Q4 and Full-Year 2012 results

AkzoNobel publishes Q4 and Full-Year 2012 results 
AMSTERDAM, THE NETHERLANDS -- (Marketwire) -- 02/20/13 --  
February 20, 2013 
* 2012 revenue up 5 percent driven by favorable currencies and
pricing, offset 
by lower volumes 
* 2012 EBITDA 4 percent higher at EUR1,901 million (2011: EUR1,834
* Performance improvement program 2012 target has been exceeded 
* Net loss from continuing operations EUR1,733 million (2011:
EUR536 million 
income), due to the Q3 impairment charge of
EUR2,106 million 
* Net cash from operating activities up 86 percent to EUR737
* Adjusted EPS EUR3.26 (2011: EUR3.10) 
* Total dividend for 2012 proposed at EUR1.45 (2011: EUR1.45) 
* Decorative Paints North America reported in discontinued
operations;     Chemicals Pakistan divestment completed in 2012 
* The economic environment remains challenging, especially in

Full-year 2012 in EUR million
                         FY 2011      FY 2012    D%
  Revenue                 14,604       15,390     5
  EBITDA(1)                1,834        1,901     4
  EBITDA margin (in %)      12.6         12.4
  Net income                 477      (2,169)

Q4 2012 in EUR million
                              Q4 2011   Q4 2012   D%
  Revenue                       3,549     3,673    3
  EBITDA(1)                       352       363    3
  EBITDA margin (in %)            9.9       9.9
  Net income                     (68)      (59)
  (1) Excluding incidentals

Akzo  Nobel N.V. (AkzoNobel) today announced  its Q4 and full-year
2012 results.
Revenue  for  the  year  was  up  5 percent  driven  by
favorable currencies and pricing, which was partially offset by a
decline in volumes. EBITDA for the year
was  4 percent higher  at
EUR1,901  million (2011:  EUR1,834 million) helped by the performance
 improvement program, which contributed EUR276 million to EBITDA. As
a consequence  of  the  impairment  charge  of  EUR2,106  million  in 
Q3 related to Decorative  Paints, we  recorded a  full-year operating 
loss of EUR1,244 million.
Excluding  this impairment  charge,
operating  income was  EUR862 million positive
(2011: EUR1,145
CEO Ton Buechner 
"AkzoNobel delivered a strong set of results in difficult markets,
by the performance improvement program which exceeded our
intermediate targets." 
Commenting on the outlook Buechner said: "The economic environment
challenging and we expect no fundamental changes in the
trends that we have seen
recently in our businesses. We will continue
to focus on performance improvements and operational efficiencies in
order to benefit from our strong
portfolio of businesses with many
leading market positions and exposure to growth markets." 
Business performance 
Decorative Paints was impacted by weaker demand in the European
markets. Specialty Chemicals delivered a robust performance, despite
weaker demand in the second half of the year. Performance Coatings
recorded a strong performance driven by margin management and
operational efficiency actions, despite weaker
volumes overall. 
Portfolio changes 
On December 14, 2012, AkzoNobel announced the sale of Decorative
Paints North
America to PPG. On December 28, 2012, the company
completed the sale of Chemicals Pakistan, which was subsequently
deconsolidated. In early 2012, AkzoNobel acquired Boxing
Oleochemicals in Specialty Chemicals - the leading
supplier of
nitrile amines and derivatives in China and throughout Asia.
Schramm/SSCP acquisition accounted for the positive acquisition
effect in Performance Coatings as these activities were consolidated
from Q4 2011. 
Incidental items 
AkzoNobel incurred higher restructuring costs, mainly in mature
markets, as the
company implemented its performance improvement
program. Restructuring activities are ongoing across the businesses,
with the restructuring being stepped up in the European Decorative
Paints business in Q4. 
Raw materials 
On average, raw material costs were stable compared with the previous
year, with
the upward pressure on oil prices offsetting softer TiO(2)
Proposed dividend 
AkzoNobel will propose a total dividend for 2012 of EUR1.45. A final
dividend will be paid in cash unless shareholders elect to receive a
stock dividend. 

Business area highlights
                         Decorative Paints
  4(th) Quarter                                   Full-year
  2011     2012    D%                            2011    2012     D%
   965      995     3    Revenue                4,201   4,297      2
    61       47   (23)   EBITDA                   479     425   (11)
   6.3      4.7          EBITDA margin (in %)    11.4     9.9
                       Performance Coatings
  4(th )Quarter                                 Full-year
   2011    2012   D%                           2011    2012   D%
  1,326   1,394   5    Revenue                5,170   5,702   10
    141     190   35   EBITDA                   611     769   26
   10.6    13.6        EBITDA margin (in %)    11.8    13.5
                         Specialty Chemicals
  4(th) Quarter                                   Full-year
   2011    2012    D%                            2011    2012    D%
  1,285   1,320    3     Revenue                5,335   5,543     4
    207     172   (17)   EBITDA                   906     889   (2)
   16.1    13.0          EBITDA margin (in %)    17.0    16.0

The 2012 full-year and Q4 report can be read on
AkzoNobel is the largest global paint and coatings company and a
major producer
of specialty chemicals. We supply industries and
consumers worldwide with innovative products and are passionate about
developing sustainable answers for
our customers. Our portfolio
includes well known brands such as Dulux, Sikkens,
International and
Eka. Headquartered in Amsterdam, the Netherlands, we are a
Fortune 500 company and are consistently ranked as one of the leaders
on the Dow Jones Sustainability Indexes. With operations in more than
80 countries,
our 55,000 people around the world are committed to
excellence and delivering
Tomorrow's Answers Today(TM). 
Pdf file AkzoNobel Q4/FY 2012 press release: 
AkzoNobel report for the year 2012 and 4th quarter: 
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Source: Akzo Nobel NV via Thomson Reuters ONE 
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