AMSTERDAM, the Netherlands - AkzoNobel has released it second-quarter 2008 results, reporting a six-percent decrease in net income before fair value adjustments compared to 2007 second-quarter results. The company lowered expectations for the full year, announcing it does not expect its 2008 EBITDA before incidentals to match the 2007 pro forma level, although it expects to be close in constant currencies.
Revenue for the second quarter of 2008 came in ahead of estimates at EUR 3,870 million, compared to pro forma revenue of EUR 3,791 million for 2007.
Net profit from continuing operations fell to EUR 184 million, compared to pro forma results of 225 million for 2007.
The company experienced incidental charges of EUR 86 million, including costs related to the sale of the Decorative Paints businesses as part of anti-trust commitments following the acquisition of ICI.
"For the remainder of the year, we anticipate weaker economic conditions in some of our mature markets and raw material and energy price increases show no signs of easing," commented CFO Keith Nichols. "We are focused on the management of our margins, and we are accelerating the realization of synergies from the acquisition of ICI. Based on our latest forecast, we do not expect our reported 2008 EBITDA before incidentals to match the 2007 pro forma level of EUR 1,870 million, although we expect to be close in constant currencies."