Painting & Coating Industry (PCI) logo Powder coating summit logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Painting & Coating Industry (PCI) logo Powder coating summit logo
  • NEWS
    • Latest News
    • Market Trends & Reports
    • Price Alerts
    • Subscribe to eNewsletters
    • Global Top 10/ PCI 25
    • Weekly Featured Article
    • COATLE Word Game
  • PRODUCTS
    • Product News
    • Must See Products and Services
  • MATERIALS
    • Additives
    • Resins/Polymers
    • Pigments
    • Equipment
    • Distributors
  • TECHNOLOGIES
    • Adhesives
    • Architectural Coatings
    • Industrial Coatings
    • Nanotechnology
    • Powder Coatings
    • Solventborne
    • Special Purpose Coatings
    • Sustainability
    • UV Coatings
    • Waterborne
    • FINISHING
      • Finishing News
      • Finishing Technologies
      • Finishing Equipment
    • RESOURCES
      • Columns
        • Ask Joe Powder
        • Did you know?
        • Distribution Dive
        • Focus on Canada
        • Formulating With Mike
        • Innovation Insights
        • Moody's Coatings Conundrums
        • Powder Coating Perspectives
        • Target the Market
        • TiO2 Insider
      • Blogs
        • Editor's Viewpoint
        • Industry Insights
      • Coatings Supplier Handbook
      • Podcasts and Videos
        • COAT-IT! Podcast
        • Videos/PCI TV
      • PCI Store
      • eBooks
      • Sponsor Insights
      • White Papers
      • COATLE Word Game
    • EVENTS
      • Coatings Trends & Technologies Summit
      • Paint and Coatings Academy
      • Webinars
      • Calendar of Events
      • Lifetime Achievement Award
    • DIRECTORIES
      • Buyer's Guide
      • Equipment Directory
      • Materials Directory
    • EMAGAZINE
      • Current Issue
      • eMagazine Archive
      • China Issue Archive
      • Editorial Advisory Board
    • CONTACT
      • Contact Us
      • Advertise
      • Subscribe to eMagazine
      • Subscribe to eNewsletters
    Global Top 10 and PCI 25

    AkzoNobel Shows Profitability Improvement for First Quarter Despite COVID-19 Impacts

    ArchitecturalCoatings-126260819.jpg
    April 24, 2020

    AMSTERDAM — Akzo Nobel N.V. has published results for the first quarter of 2020, with adjusted operating income up 31% to €214 million, compared to €163 million in the first quarter of 2019, despite impacts from COVID-19. Return on sales, excluding unallocated costs, increased 12.4%, compared to 9.1% in 2019, with price/mix up 2%. Operating income was up 65% at €187 million, compared to €113 million in 2019, and OPI margin improved to 9.1%. Transformation and other savings delivered €44 million in lower costs.

    Revenue was 6% lower and 5% lower in constant currencies, with positive price/mix of 2% more than offset by 7% lower volumes, mainly due to the impact of COVID-19. Operating income oft €187 million includes €27 million negative impact from identified items, related to transformation costs; OPI margin improved to 9.1%. Net income from total operations was €114 million, compared to €65 million in 2019, and adjusted EPS from continuing operations was up 54% at €0.71.

    AkzoNobel CEO, Thierry Vanlancker, commented, “Just like many around the world, we’re dealing with challenges from COVID-19. Our top priority at AkzoNobel is the health and safety of our colleagues. As a business, we’re also taking all reasonable steps to continue serving our customers and make sure AkzoNobel remains in a strong position to weather the storm.

    “Our results for the first quarter demonstrate our transformation was fully on track, even though COVID-19 already had a significant impact, especially in China and later in the quarter other regions of the world. Our performance improvement accelerated, resulting in business return on sales 330 basis points higher at 12.4%. These results were possible due to the passion and commitment of everyone at AkzoNobel who have been working – and winning – together during unprecedented circumstances.

    “While things are gradually returning to normal in China, COVID-19 headwinds are increasing for most of the world and will have a significant impact during Q2. Although we’ve been forced to pause key parts of our transformation and suspend our 2020 financial ambition, we’re eager to quickly resume our positive momentum once markets normalize.”

    Recent Highlights

    AkzoNobel launched a new wave of exterior water-based paint that offers superior metal protection. Hammerite Ultima can be applied directly onto any metal surface – as well as rust – without the need for a primer. Suitable for anything from gates and fences to railings and garden furniture, the new product is now available in Germany, Spain and France and is scheduled for launch onto other markets in due course.

    The BMW Group has chosen AkzoNobel to be a trusted supplier of vehicle refinish products and services to a large part of its distribution network around the world. The deal came into effect on Feb. 1, 2020. Covering 44 locations, the agreement means that the company’s premium Sikkens and Lesonal brands are now approved for paint repairs of BMW and Mini passenger cars at authorized dealers, repairers, importers and national BMW Group branches.

    One of AkzoNobel’s automotive training centers has been given a new lease of life. Now restored and expanded, the new facility in Pruszków, Poland, has doubled in size and is the company’s most advanced automotive training center in Europe. Featuring state-of-the-art equipment, it will serve as a hub of learning and collaboration, hosting more than 1,000 people a year.

    The first in a series of challenging sustainability ambitions has been announced by AkzoNobel, designed to accelerate the newly focused paints and coatings company towards zero waste and cut carbon emissions in half by 2030. These two key ambitions – and their related targets – are the first in a wave of measures and focus on the “Planet” element of the company’s new “People. Planet. Paint.” approach to sustainability. The associated targets for 2030 include a 30% reduction in energy use, 100% renewable electricity, 100% water reuse at the company’s most water intensive sites and zero non-reusable waste.

    Outlook

    AkzoNobel has paused key parts of the company’s transformation and suspended its 2020 financial ambition in response to the significant market disruption resulting from the COVID-19 pandemic. Headwinds related to COVID-19 are increasing for most parts of the world and will have a significant impact during the second quarter. Demand trends differ per region and segment in an uncertain macro-economic environment. Raw material costs are expected to have a moderately favorable impact for the first half of 2020. Continued margin management and cost-saving programs are in place to address the current challenges. Once markets normalize, AkzoNobel intends to resume its positive momentum and drive performance in line with industry frontrunners.

    KEYWORDS: Paint and Coating Manufacturers

    Share This Story

    Looking for a reprint of this article?
    From high-res PDFs to custom plaques, order your copy today!

    Recommended Content

    JOIN TODAY
    to unlock your recommendations.

    Already have an account? Sign In

    • PCI-0724-Global10-Feature-1440.png

      2024 Global Top 10: Top Paint and Coatings Companies

      Who ranks on top? PCI’s annual ranking of the top 10...
      Paint and Coating Market Reports
      By: Courtney Bassett
    • PCI-0724-PCI25-Feature-1440.png

      2024 PCI 25: Top Paint and Coatings Companies

      PCI's annual ranking of the top 25 North American paint...
      Paint and Coating Market Reports
      By: Courtney Bassett
    • pci1022-Kinaltek-Lead-1170.jpg

      A Novel Pigment Production Technology

      Following an extensive R&D program that demonstrated...
      Paint and Coating Pigments
      By: Jawad Haidar and Nitin Soni
    You must login or register in order to post a comment.

    Report Abusive Comment

    Subscribe For Free!
    • eMagazine
    • eNewsletter
    • Online Registration
    • Subscription Customer Service

    More Videos

    Sponsored Content

    Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the PCI audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of PCI or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

    close
    • Modern arapartment complex painted in bright colors.
      Sponsored byEPS - Engineered Polymer Solutions

      Architectural Polymers Leading the Way in Coatings Innovation

    • paint sprayer in a workshop
      Sponsored byallnex

      Enabling Performance and Compliance: allnex Introduces a New Line of VOC Exempt Solvent-Borne Resins

    Popular Stories

    No. 3 AkzoNobel

    AkzoNobel to Close Two Manufacturing Sites

    Modern living room interior with green plants, sofa and green wall

    Reimagining Architectural Paints with Plant-Based Acrylic Binders

    Modern arapartment complex painted in bright colors.

    Architectural Polymers Leading the Way in Coatings Innovation



    PCI Buyers Guide

    Submit a Request for Proposal (RFP) to suppliers of your choice with details on what you need with a click of a button

    Start your RFP

    Browse our Buyers Guide for manufacturers and distributors of all types of coatings products and much more!

    Find Suppliers

    Events

    September 3, 2025

    Coatings Trends & Technologies Summit

    The Coatings Trends & Technologies (CTT) Summit is an annual conference for both liquid and powder coatings formulators and manufacturers to discuss innovations in coatings technology. This event combines high-quality technical presentations, a resource-rich exhibit hall, and dedicated networking opportunities to connect scientific minds, foster innovation, and cultivate game-changing new ideas!

    January 1, 2030

    Webinar Sponsorship Information

    For webinar sponsorship information, visit www.bnpevents.com/webinars or email webinars@bnpmedia.com.

    View All Submit An Event

    Poll

    Longest-running laboratory experiment

    What is the longest-running laboratory experiment?
    View Results Poll Archive

    Products

    CTT Summit Short Courses (Live 9/3/25)

    Coatings Trends & Technologies Summit is expanding its offerings with four short courses. These short courses will offer an extensive day of interactive learning.

    See More Products
    pci  webinar april 2025

    PCI CASE EBOOK

    Related Articles

    • Axalta Logo

      Axalta Releases First Quarter 2020 Results, Provides Update on COVID-19 Impacts

      See More
    • NEWS

      Weak Demand in Europe Impacts AkzoNobel’s First Quarter

      See More
    • Additives-124578787.jpg

      COVID-19 Impacts May Echo Beyond 2020

      See More

    Related Products

    See More Products
    • marketsandmarketslogo.jpg

      Metallic Powder Coatings Market by Process Type (Bonding, Blending, Extrusion)...

    • marketsandmarketslogo.jpg

      Protective Coatings Market by Resin Type...

    • marketsandmarketslogo.jpg

      Pipe Coatings Market by Surface (Internal and External)...

    See More Products
    ×

    Keep the info flowing with our eNewsletters!

    Get the latest industry updates tailored your way.

    JOIN TODAY!
    • RESOURCES
      • Advertise
      • Contact Us
      • Directories
      • Store
      • Want More
    • SIGN UP TODAY
      • Create Account
      • eMagazine
      • eNewsletters
      • Customer Service
      • Manage Preferences
    • SERVICES
      • Marketing Services
      • Reprints
      • Market Research
      • List Rental
      • Survey & Sample
    • STAY CONNECTED
      • LinkedIn
      • Facebook
      • Youtube
      • X (Twitter)
    • PRIVACY
      • PRIVACY POLICY
      • TERMS & CONDITIONS
      • DO NOT SELL MY PERSONAL INFORMATION
      • PRIVACY REQUEST
      • ACCESSIBILITY

    Copyright ©2025. All Rights Reserved BNP Media.

    Design, CMS, Hosting & Web Development :: ePublishing