AMSTERDAM — AkzoNobel published financial results for the second quarter of 2019, with adjusted operating income up 36% despite continued external headwinds. The results show progress towards the company’s 15 by 20 strategy.

The company reported adjusted operating income 36% higher at €305 million, compared to €225 million in 2018. For the second quarter of 2019, revenue was flat and up 1% in constant currencies, with positive price/mix of 5% and acquisitions contributing 1%, offset by 6% lower volumes.

Adjusted operating income for the second quarter of 2019 was up 36% at €305 million, compared to €225 million in 2018 — which included €20 million of one-off costs — driven by ongoing pricing initiatives and cost-saving programs. ROS was reported at 12.4%, compared to 9.2% in the second quarter of 2018, and operating income was €308 million, which includes €3 million positive impact from identified items, related to a gain on disposal following asset network optimization (€57 million) and transformation costs (€54 million). 2018 operating income at €192 million included €33 million negative identified items

Decorative Paints ROS was up 13.5%, compared to 12.2% in the second quarter of 2018; Performance Coatings ROS was up 13.6%, compared to 11.8% in the second quarter of 2018. Adjusted EPS from continuing operations was up 85% at €0.96 (2018: €0.52); EPS from total operations was €1.07 (2018: €1.06).

AkzoNobel CEO, Thierry Vanlancker, commented, “We remain fully focused on delivering our Winning Together: 15 by 20 strategy and our Q2 results show we’re making progress with profit up 36%. Return on sales was 13.7% for the quarter, moving us another step closer to our 2020 ambition of 15%.

“This was an important quarter for us to demonstrate our strategy is working. Q2 performance improved largely due to our ongoing pricing initiatives and cost-saving programs, despite headwinds in the external business environment. This is a rewarding step for the organization and encouraging for the work still ahead of us as we continue our transformation journey.

“In the face of softer market trends, we continue to focus on delivering our strategy while investing in strategic growth opportunities, to become recognized as the reference in the paints and coatings industry.”