AkzoNobel publishes Q1 2013 results

AkzoNobel publishes Q1 2013 results 
AMSTERDAM, THE NETHERLANDS -- (Marketwired) -- 04/18/13 --  
* Revenue down 7 percent, due to weak demand in Europe and
divestments 
* Operating income at EUR217 million (2012: EUR236 million) as
weaker end markets 
and production issues in the Specialty
Chemicals value chain impacted     results 
* Cash from operating activities improved EUR298 million due to
lower pension 
payments 
* Net income attributable to shareholders EUR89 million (2012:
EUR84 million) 
* Adjusted EPS EUR0.51 (2012: EUR0.65) 
* Divestment of Decorative Paints North America completed on April
1, 2013 
* Strategic focus announced in February addresses the need for
performance 
improvement in challenging market conditions 
Q1 2013 in EUR 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 EUR217
million. The acceleration of AkzoNobel's performance
improvement
program is progressing toward achieving the full EBITDA benefit
of
EUR500 million a year early, as announced at the strategy update
in February 2013. 
Revenue in Decorative Paints declined 5 percent, mainly due to lower
volumes in Europe, price/mix effects and currencies. Operating income
at EUR43 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. 
Divestments 
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
 
                             1st 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
 
                             1st 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
 
                             1st 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 Today(TM). 
AkzoNobel Q1 2013 Report:
http://hugin.info/130660/R/1693917/557018.pdf 
Pdf file AkzoNobel Q1 2013 press release:
http://hugin.info/130660/R/1693917/557015.pdf 
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Source: Akzo Nobel NV via Thomson Reuters ONE 
[HUG#1693917] 
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Contacts:
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Contacts:
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