AkzoNobel Reports Lower Third-Quarter Results
October 30, 2008
AkzoNobel has announced its results for the third quarter 2008, emphasizing the fundamental strength of the company’s operating businesses and balance sheet and maintaining its full-year the outlook for 2008.
AMSTERDAM, the Netherlands - AkzoNobel has announced its results for the third quarter 2008, emphasizing the fundamental strength of the company’s operating businesses and balance sheet and maintaining its full-year the outlook for 2008.
AkzoNobel reported a 23 percent fall in third-quarter net profit, hit by non-recurring items. Net profit fell to EUR 157 million in the third quarter of 2008 from EUR 203 million for the third quarter of 2007. Net income from continuing operations before incidentals and before fair-value adjustments was EUR 219 million for third-quarter 2008, compared to EUR 258 million in the third quarter of 2007. Revenue increased 3 percent to EUR 3.8 billion, while EBITDA fell 8 percent to EUR 477 million. EBITDA in constant currencies was EUR 492 million compared to EUR 517 million in the third quarter of 2007.
Keith Nichols, AkzoNobel CFO said, "All three business areas achieved underlying growth. This is solid proof of the strong positions AkzoNobel holds in diverse, highly attractive predominantly low-cyclical, sectors with good growth potential. It is also evidence of management actions taken to date to improve operational performance and to deliver the synergies from the ICI acquisition."
Nichols also outlined management actions being taken to improve operational performance. "It is clear that global economic conditions are deteriorating and that forward visibility is therefore limited. At this stage, the potential severity of the economic cycle is unclear. Recognizing this, we will remain focused on working towards our medium-term target of an EBITDA margin of 14 percent by the end of 2011, on delivering the EUR 340 million ICI synergies faster, on driving margin management programs across the company, and on rigorous cost management to deliver at least an additional EUR 100 million in net cost savings."