AkzoNobel CEO, Thierry Vanlancker, commented, “It’s clear COVID-19 is having a huge impact – for you, for us at AkzoNobel, and for the whole world. Our priority right now is the health and safety of our employees, their families and our partners. At the same time, we’re taking all reasonable steps to continue serving our customers, some of whom are relying on us to provide products across a whole range of critical industries.

“Headwinds related to COVID-19, including unpredictable and lower end market demand as well as various measures impacting our business operations, are increasing for most parts of the world and will have a significant impact during Q2. In China, activity is gradually returning to normal after being significantly impacted in Q1.

“The supply and demand balance and regulatory situation are complex, constantly evolving and differs per region and segment. There is currently little reliable visibility on the second quarter, however we expect end market demand to be significantly below any of our previous expectations.

“We’re closely monitoring the pandemic situation and taking all necessary measures, including steps to rapidly reduce costs and carefully manage cash flows in the short term. The significant market disruption forces us to pause key parts of our transformation and hence to suspend our 2020 financial ambition. Once markets normalize, we remain eager and passionate to resume our ‘Winning together: 15 by 20’ momentum to drive AkzoNobel’s performance in line with industry frontrunners.”

The company stated that it has a strong balance sheet and solid cash position. At December 31, 2019, net cash and cash equivalents were €1.2 billion and financial leverage was 0.7x net debt/EBITDA. The company has a €1.3 billion unutilized revolving credit facility with a maturity of 2025. The next bond maturity is €750 million in July 2022. AkzoNobel is committed to retain a strong investment grade credit rating.