Akzo Nobel 'Intensifies' Cost Cutting; Executive Transition Plan Announced
ARNHEM, The Netherlands - Akzo Nobel N.V. announced plans to "instensify" cost-cutting actions despite only a slight decline in net earnings in 2001 from the previous year. The company, the world's biggest coatings producer, said it will accelerate a restructuring program launched last year and will eliminate 2,000 jobs in the company's coatings business in Europe and the United States.
For 2001, Akzo Nobel reported net earnings of 938 million euros, or $821 million U.S., a decline of 1% from 2000. The company said sales rose for its Coatings segment, but Chairman Cees van Lede said a restructuring program launched last year would be "intensified in order to improve the cost structure" and "create a platform for more growth." He said the company will seek to reduce costs by approximately 200 million euros annually over the next several years.