July 21, 2011 

  • Revenue up 8 percent to ?4.1 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 ?551 million (2010: ?614 million)
  • Total net income at ?268 million (2010: ?273 million)
  • Adjusted EPS (earnings per share) at ?1.09 (2010: ?1.18)
  • 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 ? 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 ? 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 ?551 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:
http://www.akzonobel.com/quarterlyresults.

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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(TM).

Not for publication - for more information

Corporate  Media Relations, tel. +31 20 502 7833

Contact: Tim van der Zanden

Corporate Investor Relations, tel. +31 20 502 7854

Contacts: Huib Wurfbain and Ivar Smits

 

 

 

 

 

 

 

 

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


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Source: Akzo Nobel NV via Thomson Reuters ONE
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