PaintSquare.com
      | Connect Follow us on Twitter Like us on Facebook
About | Subscribe | Advertise
  

 

Paint and Coatings Industry News

Main News Page


AkzoNobel Reports Revenue Increase for Q1

Friday, April 23, 2010

Comment | More

Akzo Nobel N.V. (AkzoNobel) reported first-quarter net income of 81 million euros (approximately $108 million), a decline of 7% from the first quarter of 2009. Increased sales for the company’s coatings businesses contributed to revenue growth of 6%, to 3.065 billion euros (appr. $4 billion).

Excluding one-time items, earnings before interest, taxes, depreciation, and amortization (EBITDA) was 258 million euros ($343.5 million), compared to 150 million euros for the first quarter of 2009.

CEO Hans Wijers said the results indicate “a good start to 2010, particularly in higher-growth markets, where our performance was strong.” He added that “while revenue growth across all AkzoNobel’s businesses has been solid, our Q1 performance compares with a particularly weak first quarter in 2009."

Coatings-business results

First-quarter revenue for the company’s Decorative Paints business was 1.056 billion euros (appr. $1.4 million), a gain of 7% from the first quarter of 2009. EBITDA for the business rose 71%, to 82 million euros ($109 million).

For the Performance Coatings business, first-quarter revenue was 1.048 billion euros (appr. $1.4 billion), up 6% from the prior-year period. The unit’s EBITDA rose 36%, to 143 million euros ($190 million).

Contributing to the Decorative Paints revenue increase was a 5% gain in volume, with revenue growth reported to be strong in higher-growth markets. Revenue rose 30% in Asia while holding steady in “mature” markets compared to 2009, the company said. Earnings in mature markets benefited from “synergies” and restructuring actions, and “closure and integration of multiple sites across Europe is running according to plan,” the company said.

Revenue growth for Performance Coatings was driven by an 8% increase in volumes, although marine maintenance activity was reported to be lower. The unit staged a recovery from a “difficult Q1 last year,” but most businesses “are still below pre-recession levels,” the company said, adding that volume recovery was evident in all activities, with the exception of the late-cycle marine and protective-coatings businesses.

‘Cautiously optimistic’ outlook

Wijers said the company will continue to feel pressure from further raw-material cost increases during the year, and he said the company remains cautious about the strength of the recovery. He said the company “will continue to focus on customers, cost reduction and cash generation, but we will also prioritize investments and initiatives to ensure that the company is able to capture growth."

The company said it remains on track to achieve its medium-term target of an EBITDA margin of 14% by the end of 2011. “The focus on customers, cost reduction, and cash generation continues, while investments to capture growth remain a priority, particularly in higher-growth markets,” the company said. “Although volumes remain below pre-recessionary levels in most businesses, increases in volume, first evident in Q2 2009, have continued more broadly and are a reason for cautious optimism.”

 

   

Tagged categories: AkzoNobel; Architectural coatings; Coatings manufacturers; Earnings reports; Economy; Finance; Protective coatings

Comment Join the Conversation:

Sign in to our community to add your comments.

Hempel (USA) Inc.
HEMPEL PROTECTIVE COATINGS

Efficient systems and high quality products to reduce your maintenance costs. Visit Hempel Protective for more information.


International Paint LLC

International Paint Engineered Coatings

Learn about our solutions for:
  • Structural Steel
  • Piping & Equipment
  • Storage Tanks
  • Pressure Vessels
  • Secondary Containment


    SSPC: The Society for Protective Coatings
    http://www.sspc.org/

    Join SSPC and Enhance
    Your Career !


    Thermion Inc
    Buy Back Program

    We are offering $5,000
    credit for your old Model
    This drive system is
    being discontinued by
    the manufacturer.
    More information at
    thermioninc.com
    877.884.3428


    Wasser High-Tech Coatings Inc.
    Wasser Coatings Protect

    Wasser Coatings offer a complete range of Moisture Cure Urethane (NEPCOAT approved) systems in addition to Polyurea membranes and linings(NSF).
    www.wassercoatings.com


    Polyval Coatings
    Polyflex® Polyurea Linings

    Polyflex ™ new Polyurea Geotextile Membrane System has been specifically engineered to protect the environment in containment applications.
    www.polyflexlinings.com


    Novetas Solutions
    Number 1 Crushed Glass Abrasive in America!

    6 NEW plants coast to coast! Safe for environment, 100% recycled glass. White Metal Finish! No unsafe toxins like Beryllium & Arsenic!
    Call 866-775-6226


    Dow Polyurethane Systems
    Choose the Right Coat

    Dow’s high-performance, protective polyurethane spray elastomer system increases durability for steel and concrete applications.


    WINOA Group
    Steel Abrasives :Think Premium

    The Premium series is the perfect mix of high-quality products and related technical services provided by skilled experts. Visit us during the GIFA (Hall15 - D14).

  •  
     
     
    Technology Publishing

    The Technology Publishing Network

    The Journal of Protective Coatings & Linings (JPCL) PaintSquare
    Durability + Design Paint BidTracker

     
    EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
    REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
    MORE:      About PaintSquare.com   |   Privacy policy   |   Terms & conditions   |   Site Map   |   Search   |   Contact Us
     

    © Copyright 2000-2015, Technology Publishing / PaintSquare, All rights reserved
    2100 Wharton Street, Suite 310, Pittsburgh PA 15203-1951; Tel 1-412-431-8300; Fax 1-412-431-5428; E-mail webmaster@paintsquare.com