AkzoNobel Reports Increased Volume for Quarter
AMSTERDAM, The Netherlands - Akzo Nobel N.V. (AkzoNobel) reported positive volume development in all three of the company’s business areas. The company reported second-quarter revenue of €3,710 million, 4% lower compared with the same quarter last year. The decrease was mainly due to 5% adverse currency effects.
Operating income improved 10% to €353 million (2013: €322 million), leading to an increase in net income attributable to shareholders of €205 million (2013: €184 million on a comparable basis). Excluding restructuring costs, return on sales improved in all three business areas, with an overall ROS of 9.5% (2013: 8.3%).
In Decorative Paints, volumes rose by 3%, mainly because of increased volumes in Asia and most European countries. Revenue declined 9% compared with 2013, due to the divestment of Building Adhesives and a 5% adverse currency effect. Operating income was at the same level as last year, although when the effect of divestments and adverse currency developments are excluded, it increased on a comparable basis
Volumes in Performance Coatings rose 1% compared with 2013. Revenue declined 2%, with the improvements in volume and price/mix being offset by adverse currencies. Operating income improved 9%, due to operating effectiveness measures, which offset increased restructuring costs and an adverse currency impact. Return on sales was 12.4% (2013: 11%).
Volumes in Specialty Chemicals increased 4% due to better market conditions in most businesses, with Pulp and Performance Chemicals and Functional Chemicals showing strong growth. Revenue declined, mainly due to adverse currency developments and continued caustic price pressure. Operating income increased 2% compared with 2013 due to cost control and operational efficiencies.