Akzo Nobel NV
amsterdam : AKZA

April 19, 2012 01:10 ET

AkzoNobel publishes Q1 results

AMSTERDAM, NETHERLANDS--(Marketwire - Apr 19, 2012) -

  * Revenue up 6 percent to EUR3.97 billion, mainly driven by pricing
  * EBITDA 3 percent lower at EUR423 million (2011: EUR437 million), as
    weaker end markets and cost inflation impacted results
  * Net income from continuing operations EUR70 million (2011: EUR132
    million), due to higher incidental charges
  * Cash from operating activities was impacted by a one-time pension
    payment and seasonal build-up of operating working capital
  * Adjusted EPS EUR0.63 (2011: EUR0.72)
  * Performance improvement program on track
  * Economic environment and certain raw materials remain principal
    sensitivities in 2012

Q1 2012 in EUR million

                                     Q1 2011   Q1 2012    D%
  Revenue                              3,762     3,972     6
  EBITDA                                 437       423   (3)
  EBITDA margin (in %)                  11.6      10.6
  Net income continuing operations       132        70

Akzo Nobel N.V. (AkzoNobel) today reported a 6 percent increase in first quarter revenue compared with the same period in 2011, mainly driven by pricing actions to offset higher raw material costs. The EBITDA for Q1 was 3 percent lower at EUR423 million, due to weaker end markets and cost inflation. The company also announced that its global performance improvement program is on track.

Overall raw material prices remain a challenge. Looking forward, the company expects the higher oil and TiO(2) prices on average to have an inflationary impact.

Cash from operating activities was impacted by a one-time pension payment and the seasonal build-up of operating working capital.

Decorative Paints achieved a revenue increase of 4 percent in the first quarter, primarily driven by margin management in weak markets. Lower volumes impacted EBITDA, particularly in North America which benefited last year from a one- time positive customer load-in. Restructuring and cost reduction actions are underway in Europe and North America to offset weaker demand.

In Performance Coatings, revenue increased 11 percent and EBITDA was up 15 percent compared with the previous year. Industrial Coatings - boosted by acquisition activity - achieved the strongest growth, followed by Marine and Protective Coatings. Although overall activity levels were flat, there was significant variability between individual segments.

Specialty Chemicals revenue was up 4 percent, mainly due to the Boxing Oleochemicals acquisition and a positive price/mix effect. EBITDA was 2 percent lower, reflecting different trading conditions in certain businesses.

CEO Hans Wijers

"We are continuing to focus on performance improvement. Our global margin management efforts are also proving successful as we continue to mitigate the adverse effects of higher raw material costs. However, our volumes were down slightly, reflecting the volatile nature of the economic conditions. Despite these challenges, we have solid fundamentals, renowned brands and a strong geographic spread. Furthermore, the ongoing performance improvement program shows that we are taking the right steps towards achieving our medium-term ambitions."

Business area highlights

Decorative Paints

                         Q1 2011   Q1 2012     D%
  Revenue                  1,196     1,242      4
  EBITDA                      90        76   (16)
  EBITDA margin (in %)       7.5       6.1

  Performance Coatings

                         Q1 2011   Q1 2012   D%
  Revenue                  1,237     1,369   11
  EBITDA                     143       164   15
  EBITDA margin (in %)      11.6      12.0

  Specialty Chemicals

                         Q1 2011   Q1 2012    D%
  Revenue                  1,351     1,399     4
  EBITDA                     241       235   (2)
  EBITDA margin (in %)      17.8      16.8

The 2012 Q1 report can be downloaded via the AkzoNobel Report iPad app http://bit.ly/obljrf or read online at www.akzonobel.com/quarterlyresults.

- - -

AkzoNobel Report Q1 2012: http://hugin.info/130660/R/1603862/507241.pdf

Pdf file AkzoNobel Q1 2012 press release: http://hugin.info/130660/R/1603862/507240.pdf

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(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Akzo Nobel NV via Thomson Reuters ONE


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