AkzoNobel Q2 2016 Results

OREANDA-NEWS. Akzo Nobel N.V. (AKZA.AS; AKZOY)

• Volumes up 1 percent, driven by Decorative Paints and Performance Coatings
• EBIT (operating income excluding incidental items) up 9 percent at €491 million (2015: €452 million), reflecting continuous improvement initiatives and lower costs, partly offset by adverse currency effects
• Revenue down 6 percent to €3.7 billion, strongly adversely affected by currencies
• Return on sales* improved to 13.2 percent (2015: 11.4 percent); return on investment* improved to 15.1 percent (2015: 12.2 percent). ROS and ROI improved for all Business Areas
• Adjusted earnings per share (EPS) up 2 percent at €1.32 (2015: €1.30)
• Net income attributable to shareholders up at €312 million (2015: €331 million, which included positive incidental items)
• Net cash inflow from operating activities up at €453 million (2015: €407 million)
• Launched €500 million ten year bond at a coupon of 1.125 percent in April 2016
• Further de-risking of UK pension liabilities
• Outlook: The market environment remains uncertain with challenging conditions in several countries and segments. Deflationary pressures and currency headwinds are expected to continue

AkzoNobel today reported a second quarter with positive developments in profitability in all three Business Areas, despite currency pressures and a challenging market environment. EBIT increased 9 percent to €491 million. Overall volumes improved by 1 percent, although this increase was not reflected in Q2 revenue, which was down 6 percent at €3.7 billion, strongly affected by currencies. Return on sales improved to 13.2 percent and return on investment was up at 15.1 percent.