Positive Q3 outlook for AkzoNobel
AkzoNobel’s third quarter results show positive developments in profitability in all three business areas – decorative paints, performance coatings and specialty chemicals – despite what it claims a ‘challenging market environment’.
Third quarter (Q3) 2015 operating income increased 30% to €436 million, reflecting the positive effects of process optimisation, lower costs, reduced restructuring expenses and favourable currency developments.
Revenue of €3,760 million was up two percent compared with the same period last year, due to favourable currency effects, offset by divestments and slightly lower volumes. Return on sales improved to 11.6%, while return on investment rose to 12.5%.
CFO AkzoNobel, Maëlys Castella said, ‘We continue to see the benefits of our ongoing business transformation, including our new organisational structure and focus on operational excellence.
‘During Q3 we saw increased profitability across all three of our business areas, despite the challenging market conditions.
‘Our focus on sustainability was recognized as we maintained our number one position on the Dow Jones Sustainability Index for the fourth consecutive year. We remain on track to deliver our 2015 targets.’
Performance Coatings, which includes its vehicle refinishes business, had an operating income up 56%, driven by cost reductions from performance improvement initiatives, lower costs, favourable product mix, lower restructuring charges and favourable currency developments. Revenue was up five percent.