SOURCE: Akzo Nobel NV

October 21, 2010 01:16 ET

AkzoNobel publishes Q3 2010 results

AMSTERDAM, NETHERLANDS--(Marketwire - October 21, 2010) -

October 21, 2010

· Revenue EUR3.9 billion (2009: EUR3.4 billion), up 13 percent (5 percent in constant currencies)

· EBITDA EUR574 million (2009: EUR528 million), up 9 percent (2 percent in constant currencies)

· Total net income up 21 percent to EUR238 million (2009: 197 million)

· Sale of National Starch completed on October 1

· Two bolt-on acquisitions in Performance Coatings

· Interim dividend of EUR0.32 declared, up 7 percent from 2009

· New medium-term ambitions announced

· Outlook confirmed: AkzoNobel remains cautiously optimistic

Akzo Nobel N.V. (AkzoNobel), the largest global paints and coatings company and major producer of specialty chemicals, today reported a revenue increase of 13 percent for the third quarter of 2010 and an EBITDA margin of 14.8 percent.

Strong revenue gains continued to be achieved in high growth markets across all business areas, while revenue development in the mature markets remained weak. Performance Coatings and Specialty Chemicals reported the strongest revenue increases of 18 and 15 percent respectively, with Decorative Paints revenue up 8 percent.

EBITDA for the third quarter rose 9 percent to EUR574 million, with total net income rising 21 percent on 2009 to EUR238 million.

On October 1, the company completed the sale of its National Starch business for US$1.3 billion. Two acquisitions were announced during the quarter - the Lindgens Metal Decorating Coatings and Inks business, and China's Changzhou Prime Automotive Paint Co., Ltd business, both within the Performance Coatings business area.

CEO Hans Wijers

"Our Q3 results clearly illustrate that, in line with our recently announced medium-term ambitions, our three business areas are growing revenue. Although there is reason for caution in mature markets, we are confident that we are in good shape to benefit from our geographic spread and leading positions. We are particularly optimistic about our strong revenue growth in high growth markets and our ongoing efforts to capture value. Our disciplined focus on customers, cost and cash remains strong, and we are making excellent progress in driving top line growth.

Our third quarter was also notable for two bolt-on acquisitions in Performance Coatings and, the sale of National Starch on October 1. The Sikkens healthcare concept for hospitals in the Netherlands was also launched and our Glidden brand clinched the contract to be the primary paint supplier for Walmart in the US.

Following the recent launch of our Value & Values ambitions, AkzoNobel is confidently entering a period of accelerated and sustainable growth. We will leverage our leading positions, global mega-trends and geographical spread to achieve our revenue target of EUR20 billion and grow our EBITDA each year while maintaining a 13 to 15 percent margin level."

Medium- term strategic ambitions

AkzoNobel has the aspiration to be the world's leading coatings and specialty chemicals company. On September 28, the company announced new medium-term ambitions to grow revenue to EUR20 billion, increase EBITDA each year while maintaining a 13 to 15 percent margin, reduce OWC percent of revenue year- on- year by 0.5 percent towards a 12 percent level, and pay a stable to rising dividend.

The sustainability ambitions are to remain in the top three on the Dow Jones Sustainability Indexes, to be top quartile in our peer group in terms of safety performance, diversity, employee engagement and development, and eco- efficiency improvement rates.

2010 outlook

Construction and housing markets, particularly in mature markets, remain soft. However, AkzoNobel's leading positions, scale and presence in diversified markets, together with a strong balance sheet and evidence of sustained industrial demand beyond re-stocking, give reason for cautious optimism.

Business area highlights

                                Decorative Paints

          3(rd) Quarter                               January - September

Q3 2010   Q3 2009         ?%                           2010    2009    ?%

1,372     1,271           8    Revenue                3,829   3,551     8

198       198             -    EBITDA                   485     417    16

14.4      15.6                 EBITDA margin (in %)    12.7    11.7

                          Performance Coatings

        3(rd) Quarter                               January - September

Q3 2010 Q3 2009       ?%                        2010  2009           ?%

1,239   1,051         18  Revenue              3,548 3,098           15

166     169           (2) EBITDA                 500   440           14

13.4    16.1              EBITDA margin (in %)  14.1  14.2

                                Specialty Chemicals

          3(rd) Quarter                               January - September

Q3 2010   Q3 2009         ?%                           2010    2009    ?%

1,272     1,109           15   Revenue                3,684   3,304    12

254       197             29   EBITDA                   718     549    31

20.0      17.8                 EBITDA margin (in %)    19.5    16.6

The Report for the third quarter of 2010 can be read on

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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 Q3 2010 Report:

Pdf file AkzoNobel Q3 2010 press release:

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Source: Akzo Nobel NV via Thomson Reuters ONE

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