Weak Demand in Europe Impacts AkzoNobel’s First Quarter
AMSTERDAM, The Netherlands - Akzo Nobel N.V. (AkzoNobel) reported a 7 percent revenue decrease in the first quarter compared with the same period last year, due to weak demand in European markets and divestments. Operating income for the first quarter was 8 percent lower at EUR 217 million. The acceleration of AkzoNobel's performance improvement program is progressing toward achieving the full EBITDA benefit of EUR 500 million a year early, as announced at the company's strategy update in February 2013.
Revenue in Decorative Paints declined 5 percent, mainly due to lower volumes in Europe, price/mix effects and currencies. Operating income at EUR 43 million was higher than in 2012, reflecting lower restructuring charges and lower costs in mature markets.