AkzoNobel Q3 results 2013

AkzoNobel Q3 results 2013

AMSTERDAM, Netherlands, Oct. 21, 2013 (GLOBE NEWSWIRE) --

  * Revenue down 5 percent, mainly due to adverse currency effects and
  * Operating income at €303 million (2012: €248 million), mainly driven by
    lower restructuring costs and higher volumes
  * Net income attributable to shareholders €155 million (2012: €110 million)
  * Adjusted EPS stable at €0.74
  * Interim dividend of €0.33 declared
  * AkzoNobel ranked first in Dow Jones Sustainability Index in the Materials
    industry group
  * Divestment of Building Adhesives completed on October 1

  * Performance improvement program on track with estimated €160 million
    restructuring charges in Q4
  * Expected higher restructuring charges and continued weak markets mean that
    full-year operating income before incidental items is unlikely to exceed
    €908 million

Q3 2013 in € million
                                           Q3 2012   Q3 2013   D%

  Revenue                                     3,966     3,778   (5)

  Operating income                              248       303    22

  Return on Sales (ROS) %                       6.3       8.0

  EBITDA                                        428       456     7

  Net income attributable to shareholders       110       155    41

Year-to-date January - September 2013 in € million
                                           YTD 2012   YTD 2013   D %

  Revenue                                     11,717     11,108   (5)

  Operating income                               872        842   (3)

  Return on Sales (ROS) %                        7.4        7.6

  EBITDA                                       1,392      1,305   (6)

  Net income attributable to shareholders        413        673    63

Akzo Nobel N.V. (AkzoNobel) today reported third quarter revenues of €3,778
million, 5 percent lower compared with the same period last year. The decrease
was a consequence of adverse currency effects and divestments. Lower
restructuring costs and higher volumes helped push Q3 operating income up 22
percent to €303 million.

The third quarter saw AkzoNobel divest its Building Adhesives business
(completed October 1) and announce plans to drive further efficiency and
performance improvements within Functional Chemicals and in Germany, as well as
plans to streamline the management structure in Decorative Paints to improve
competitiveness. The company also published details of investments totaling more
than €50 million in two new manufacturing facilities to meet growing demand in
western China. AkzoNobel furthermore maintained its number one ranking in the
Dow Jones Sustainability Index, heading the Materials industry group.

Decorative Paints revenues of €1,136 million in the third quarter were stable
versus the previous year, with higher volumes offset by adverse currency
effects. Although conditions in Europe remained challenging in general, global
volumes were up on the same quarter last year. Lower costs and lower
restructuring charges contributed to increased operating income for Q3 2013 of
€107 million, more than double the previous year's figure.

Quarterly revenue at Performance Coatings declined 4 percent to €1,415 million
compared with last year, with the decline attributable to adverse currency
effects. Whilst overall volumes were up 2 percent, weak demand in Europe
continued to impact all businesses. Q3 restructuring costs were lower in 2013
than a year earlier, as a result of which operating income showed an
improvement, up 23 percent at €160 million.
Revenue in Specialty Chemicals was 10 percent lower at €1,252 million, primarily
as a result of the divestment of Chemicals Pakistan and negative currency
effects. Overall volumes were flat compared with a year earlier. Operating
income was down 20 percent at €107 million, mainly as a consequence of one-off
restructuring costs incurred as part of the performance improvement program in
the Functional Chemicals Business Unit.

CFO Keith Nichols
"The trading environment behind these results has not changed in that demand
remains soft and on a comparative basis Q3 last year was particularly weak.
Nevertheless, the actions we have taken to address the challenges our businesses
are facing are starting to have a positive effect; the return on sales before
restructuring charges has improved in all three Business Areas due largely to
our performance improvement actions."

Performance improvement program
The performance improvement program announced in October 2011 is on track to
deliver the full €500 million in EBITDA at the end of this year, a year early.
Further efficiency and cost reduction measures have also been identified as
restructuring activities are stepped up, the benefits of which will be realised
in 2014 and beyond. As previously indicated, the majority of the restructuring
charges for the second half of 2013 will be taken in the fourth quarter. Year-
to-date AkzoNobel has charged €144 million of an expected full-year total of
around €300 million restructuring costs, of which €75 million in Q3.

AkzoNobel will continue to implement new initiatives to optimize performance as
it moves to a culture of continuous improvement and embedded operational

The economic environment remains challenging and AkzoNobel does not expect an
early improvement in the trends faced in its end-user market segments. The
acceleration of the performance improvement program and the strategic priorities
announced in February are the right focus to have in these markets. AkzoNobel
expects restructuring charges in the fourth quarter of around €160 million. This
means that full-year operating income before incidental items is unlikely to
exceed €908 million.

Business area highlights
                          Decorative Paints

  Q3 2012   Q3 2013   D%                      YTD 2012   YTD 2013     D%

    1,141     1,136   -        Revenue            3,302      3,240    (2)

       48       107   123      Operating Income     185        252     36

      4.2       9.4           ROS %                5.6        7.8

       97       146   51       EBITDA               320        375     17

                          Performance Coatings

  Q3 2012   Q3 2013   D%                      YTD 2012   YTD 2013     D%

    1,467     1,415   (4)      Revenue            4,308      4,204    (2)

      130       160   23       Operating Income     428        452      6

      8.9      11.3           ROS %                9.9       10.8

      163       193   18       EBITDA               526        553      5

                          Specialty Chemicals

  Q3 2012   Q3 2013   D%                      YTD 2012   YTD 2013     D%

    1,393     1,252   (10)     Revenue            4,223      3,749   (11)

      133       107   (20)     Operating Income     427        327   (23)

      9.5       8.5           ROS %               10.1        8.7

      208       185   (11)     EBITDA               678        557   (18)

The 2012 figures stated in this press release exclude last year's €2.1 billion
impairment at Decorative Paints enabling a like-for-like comparison.

The 2013 Q3 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 todelivering leading products and technologies to meet the growing
demands of our fast-changing world.

Not for publication - for more information
Corporate Media Relations, tel. +31 20 502 7833Contacts: Stephen Hufton, Marc Michelsen
Corporate Investor Relations, tel. +31 20 502 7854  Contacts: Jonathan Atack, Sheryl Stokes

AkzoNobel Q3 2013 Report: http://hugin.info/130660/R/1736803/582129.pdf
AkzoNobel Q3 2013 Press Release: http://hugin.info/130660/R/1736803/582139.pdf

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