Akzo Nobel NV
amsterdam : AKZA

July 21, 2011 01:19 ET

AkzoNobel publishes Q2 2011 results

AMSTERDAM, NETHERLANDS--(Marketwire - Jul 21, 2011) -

July 21, 2011

* Revenue up 8 percent to EUR4.1 billion, driven by volume and pricing, before currency headwind of 3 percent

* Raw material inflation, challenging trading conditions and one-off factors lowered the quarter's EBITDA to EUR551 million (2010: EUR614 million)

* Total net income at EUR268 million (2010: EUR273 million)

* Adjusted EPS (earnings per share) at EUR1.09 (2010: EUR1.18)

* Additional performance improvement measures underway

* Full-year 2011 EBITDA to be at least in line with the prior year, assuming no further deterioration in economic conditions

Q2 2011 in EUR million

                        Q2 2010   Q2 2011   D%

 Revenue                3,907     4,097     5

 EBITDA                 614       551       (10)

 EBITDA margin (in %)   15.7      13.4

 Net income             273       268       (1.8)

 H1 2011 in EUR million

                        H1 2010   H1 2011   D%

 Revenue                7,153     7,859     10

 EBITDA                 1,013     988       (3)

 EBITDA margin (in %)   14.2      12.6

 Net income             354       396       11.9

Akzo Nobel N.V. (AkzoNobel) today announced revenue growth of 5 percent for the second quarter of 2011, driven by volume and price.

While the overall top-line development has remained strong, the demand pattern has been volatile during the quarter, particularly in the mature markets. High growth markets have continued to perform strongly overall.

As already reported towards the end of the quarter, the escalation of raw material costs, estimated to be around 20 percent higher year-on-year has impacted performance for the second quarter. Furthermore, there were several prolonged large site maintenance stops resulting in higher costs.

Consequently, EBITDA was EUR551 million, 10 percent below the level of last year for the quarter. EBITDA margin remained at a healthy 13.4 percent level.

Operational Excellence Program

In September 2010 the company announced a new Executive Committee to build on the company's leadership positions by transferring best practices, adopting standard and consistent methodologies, and leveraging its scale.

As the next step in this process, AkzoNobel is implementing additional performance improvement measures and functional and operational excellence initiatives to sustainably underpin AkzoNobel's performance. They will ensure that the company's growth ambitions are delivered at or above the mid-point of its 13-15 percent EBITDA margin guidance. AkzoNobel will be announcing details of these measures in the second half of the year.

CEO Hans Wijers

"I am not satisfied with our performance in the quarter, despite positive volume and pricing developments. The recent months have been challenging and it does take time for price increases to work through. We remain on track to deliver our medium-term growth ambitions, and we continue to invest in our businesses as shown by our announcements in this quarter.

In addition we are implementing additional performance improvement measures and functional and operational excellence initiatives."

Business Area highlights

                           Decorative Paints

 Q2 2010   Q2 2011   D%                           H1 2010   H1 2011   D%

 1,401     1,461     4     Revenue                2,457     2,657     8

 205       191       (7)   EBITDA                 287       281       (2)

 14.6      13.1            EBITDA margin (in %)   11.7      10.6

                            Performance Coatings

 Q2 2010   Q2 2011   D%                            H1 2010   H1 2011   D%

 1,260     1,312     4      Revenue                2,309     2,549     10

 191       170       (11)   EBITDA                 334       313       (6)

 15.2      13.0             EBITDA margin (in %)   14.5      12.3

                            Specialty Chemicals

 Q2 2010   Q2 2011   D%                            H1 2010   H1 2011   D%

 1,258     1,350     7      Revenue                2,412     2,701     12

 257       220       (14)   EBITDA                 464       461       (1)

 20.4      16.3             EBITDA margin (in %)   19.2      17.1

The Report for the second quarter of 2011 can be read on www.akzonobel.com/quarterlyresults.

- - -

AkzoNobel is the largest 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 a Global 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™.

AkzoNobel 2011 Half Yearly Report and Q2 Report: http://hugin.info/130660/R/1532448/466639.pdf

AkzoNobel Q2 2011 press release: http://hugin.info/130660/R/1532448/466638.pdf

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that:

(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


Contact Information

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    Corporate Media Relations
    tel. +31 20 502 7833
    Tim van der Zanden

    Corporate Investor Relations
    tel. +31 20 502 7854
    Huib Wurfbain and Ivar Smits