AMSTERDAM, the Netherlands - Akzo Nobel N.V. (AkzoNobel) reported an eight percent increase in second-quarter revenue compared with the same period in 2011, mainly driven by pricing actions to offset higher raw material costs and currency effects. The EBITDA for the second quarter was eight percent higher at EUR 593 million. The company also announced that its global performance improvement program is making good progress.
Decorative Paints achieved a revenue increase of six percent in the second quarter, mainly due to favorable price/mix effects and positive currency effects. EBITDA was down eight percent, reflecting weaker European market conditions. Restructuring continues in mature markets, particularly in Europe.
In Performance Coatings, revenue increased 12 percent, supported by margin management, acquisitions and currency effects. EBITDA was up 25 percent compared with the previous year, further supported by improvements in operational efficiency. Volume declined, although there was significant variability between individual activities.
Specialty Chemicals revenue was up six percent, supported by margin management, the Boxing Oleochemicals acquisition and currency effects. EBITDA was 16 percent higher, reflecting improved margins and continued cost restructuring. Volumes were two percent below the previous year, reflecting a slowdown in most businesses in the quarter.
AkzoNobel continued to see inflation in the overall raw materials portfolio, although less than last year. The main driver of input cost inflation is TiO2. In the second quarter, the company has seen an increase in supply from China and a reduction in global demand. However, in total, the company continues to expect an increased average cost for the year.