Akzo Nobel NV : AkzoNobel publishes Q1 2013 results

             Akzo Nobel NV : AkzoNobel publishes Q1 2013 results

April 18, 2013

  oRevenue down 7 percent, due to weak demand in Europe and divestments
  oOperating income at €217 million (2012: €236 million) as weaker end
    markets and production issues in the Specialty Chemicals value chain
    impacted results
  oCash from operating activities improved €298 million due to lower pension
  oNet income attributable to shareholders €89 million (2012: €84 million)
  oAdjusted EPS €0.51 (2012: €0.65)
  oDivestment of Decorative Paints North America completed on April 1, 2013
  oStrategic focus announced in February addresses the need for performance
    improvement in challenging market conditions

Q1 2013 in € million

                                 Q1 2012 Q1 2013   D%
Revenue                            3,707   3,465  (7)
Operating income                     236     217  (8)
Return on sales (ROS) %              6.4     6.3
EBITDA                               410     375  (9)
Net income continuing operations     110      96 (13)

Akzo Nobel N.V. (AkzoNobel) today reported a 7 percent revenue decrease in the
first quarter compared with the same period last year. This was due to weak
demand in European markets and divestments. Operating income for Q1 was 8
percent lower at €217 million. The acceleration of AkzoNobel's performance
improvement program is progressing toward achieving the full EBITDA benefit of
€500 million a year early, as announced at the strategy update in February

Revenue in Decorative Paints declined 5 percent, mainly due to lower volumes
in Europe, price/mix effects and currencies. Operating income at €43 million
was higher than in 2012, reflecting lower restructuring charges and lower
costs in mature markets.

Revenue in Performance Coatings declined 3 percent compared with the previous
year.The slowdown in Europe impacted all businesses. Operating income was up 2
percent and margins improved due to a combination of margin management
activities and ongoing cost control.

Revenue in Specialty Chemicals was 11 percent lower due to divestments and
lower volumes, mainly in construction related products and the pulp bleaching
and plastics industries. The cold weather affected seasonal segments such as
agriculture and the exit from the merchant fatty acids business in China also
contributed to the volume decline. Profitability was impacted by the lower
volumes and productions stops.


In December 2012, AkzoNobel completed the divestment of Chemicals Pakistan,
which accounts for the divestment impact in revenue.

The divestment of Decorative Paints North America was completed on April 2013
and is reported in discontinued operations. The cash inflows and the deal
result will be reported in Q2.

CFO Keith Nichols

"The economic environment remains challenging and we do not expect an early
improvement in the trends that we see in our businesses. The acceleration of
our performance improvement program and the strategic priorities announced in
February are the right focus to have in these markets."

Business area highlights

          Decorative Paints
                        1^st Quarter
                        2012 2013 D%
Revenue                  974  925 (5)
Operating income          25   43 72
Return on sales (ROS) %  2.6  4.6
EBITDA                    68   88 29

         Performance Coatings
                         1^st Quarter
                         2012  2013 D%
Revenue                 1,369 1,331 (3)
Operating income          127   129  2
Return on sales (ROS) %   9.3   9.7
EBITDA                    159   163  3

          Specialty Chemicals
                         1^st Quarter
                         2012  2013  D%
Revenue                 1,399 1,244 (11)
Operating income          140    99 (29)
Return on sales (ROS) %  10.0   8.0
EBITDA                    235   174 (26)

The 2013 Q1 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. 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 consistently ranked as one of the leaders in the area of
sustainability. With operations in more than 80 countries, our 50,000 people
around the world are committed to excellence and delivering Tomorrow's Answers

Not for publication - for more information

Corporate Media Relations, tel. +31 20 502 7833
Contacts: Paul Thomas, Jeroen Pul

Corporate Investor Relations, tel. +31 20 502 7854

Contacts: Jonathan Atack, Sheryl Stokes

AkzoNobel Q1 2013 Report
Pdf file AkzoNobel Q1 2013 press release


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Source: Akzo Nobel NV via Thomson Reuters ONE
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