Akzo Nobel Delivers Profitable Growth in Third Quarter 2006
Volume growth was 5%, and selling prices increased by 1%. Excluding incidental items, operating income rose 14% from EUR 319 million to EUR 364 million. The EBIT margin significantly improved from 9.7% to 10.6%.
Net income surged 79% from EUR 175 million to EUR 313 million as a result of improved operational earnings and incidental benefits. Excluding incidental items, net income was up 19% from EUR 201 million to EUR 240 million.
Akzo Nobel Coatings achieved a strong quarter with year-on-year revenue growth of 12%. The acquisitions of Flood, Sico, Swiss Lack, Balakom and Zweihorn added 7% to revenues. Favorable demand in the global industrial markets has been driven by consumer electronics and construction industries. Strong growth was posted at all activities of Marine & Protective Coatings, although Marine profits are suffering from raw material price pressure (copper, zinc and epoxy resins). Demand for coatings for super-yacht construction was at record levels throughout Europe. Excluding incidental items, operating income grew 13% to EUR 161 million, while the EBIT margin neared 10%.
The separation, which will split the company into Akzo Nobel -- active in coatings and chemicals -- and Organon BioSciences, active in pharmaceuticals, was approved at the Extraordinary General Meeting of shareholders in September.
The full report for the third quarter can be read on the company's corporate website www.akzonobel.com/com/News/Reports.htm.