| Connect Follow us on Twitter Like us on Facebook
About | Subscribe | Advertise


Free Download of our eBook on Overcoating Bridges and Other Structures

Paint and Coatings Industry News

Main News Page

AkzoNobel Reports Progress in Q2

Thursday, July 19, 2012

More items for Coating Materials

Comment | More

Protective and industrial coatings brightened AkzoNobel’s otherwise-struggling second quarter, with the Dutch coating giant turning in single-digit revenue growth built largely on price increases, according to company financials released Thursday (July 19).

In its first quarter under new CEO Ton Büchner, Akzo Nobel N.V. reported an 8 percent increase in revenue from the year-ago period, mainly driven by pricing actions.

Second-quarter earnings (EBITDA) for Q2 were also 8 percent higher, at €593 million (about $727.8 million US). Adjusted earnings per share (EPS) were €1.12 ($1.37 US), up from €1.09 ($1.33 US) in the same period in 2011.

 Making Progress

 Akzo Nobel earnings

Sales volumes declined 2 percent overall, due primarily to the economic slowdown in Europe. “The economic environment remains the principal sensitivity in 2012,” AkzoNobel said in a release.

Nevertheless, the company said that its global performance improvement program, launched in mid-2011, was “making good progress” and would reap greater results in the second half of 2012. AkzoNobel has laid off about 1,000 employees since the program began, including 800 in 2012.

Performance Coatings Improve

AkzoNobel drew strength from its Performance Coatings business, although individual units varied widely.

Overall revenues increased by 12 percent over the same period in 2011, driven by strong growth in Industrial Coatings (from acquisitions) and Marine and Protective Coatings (due to strong demand in protective coatings).

Marine and Protective Coatings revenue was up 15 percent over 2011, although marine volumes declined with the slowdown in the new shipbuilding market. Protective Coatings volumes increased across most regions, with especially good growth coming from the oil and gas businesses.

The company reported “notable success” in the quarter with coatings supplied to “mega” projects commissioned by the oil majors Chevron, Total and Shell.

Industrial Coatings revenue climbed 28 percent, mainly due to acquisition activity. Coil Coatings’ construction-related business achieved strong growth in the high-growth markets of Turkey and Russia. Packaging Coatings’ beverage and food-related business continued to increase its top line, especially in Asia, while Specialty Finishes gained in the automotive and consumer electronics markets.

Automotive and Aerospace revenues remained flat, while Powder Coatings revenues climbed 7 percent.

Other Segments, Challenges

The Decorative Paints business achieved a 6 percent revenue increase in the second quarter, as gains in the Americas and Asia offset flat demand in Europe. EBITDA was down 8 percent, reflecting weaker European market conditions. Restructuring continued in Europe and other mature markets.

Specialty Chemicals revenue was up 6 percent, thanks to margin management, the Boxing Oleochemicals acquisition and currency effects. EBITDA rose 16 percent higher, the company said, reflecting improved margins and continued cost restructuring. Volumes dipped 2 percent below the previous year.

AkzoNobel earnings

AkzoNobel continued to battle raw materials costs but said that the quarter had benefited from increasing supply from China and reduction in global demand.

However, the company also expressed concern about the European economy, delayed recovery of the U.S. real-estate market, and the potential for a slowdown in Asia.

Büchner: Solid Businesses, Strong Markets

“The overall performance in our Q2 results is solid, given the increasingly difficult economic environment,” said CEO Ton Büchner, who assumed his position at the end of April.

“In my first few months as CEO, I have spent a great deal of time with our customers, employees and shareholders, and have also visited many of our factories around the world,” he said.

“My initial observations are that we have solid businesses and many strong market positions. The opportunity remains to increase return on capital, cash generation and margins, which is why the immediate priority for me and the leadership team is performance improvement.”


Tagged categories: AkzoNobel; Coatings manufacturers; Earnings reports; High-performance coatings; Marine Coatings; Market trends; Protective coatings

Comment Join the Conversation:

Sign in to our community to add your comments.

International Paint LLC
Premium Low VOC Polyurethane Finish

AkzoNobel introduces Interthane 990V as a 250 g/l HAPS free polyurethane with outstanding color and gloss retention. 990V is fast curing and applicator friendly.

Jessup Manufacturing Company
More Traction for Extreme Marine Conditions

Jessup Safety Track® 3800 Military Grade peel-and-stick non-skid tapes and treads provide extra slip resistance for decks. MIL-PRF-24467C Type XI, Black & Gray.

New resins from BASF will have metals loving water:

Excellent corrosion resistance, low VOC, high gloss, thin films

Sherwin-Williams Protective & Marine Coatings

With 4,000 distribution points and 3,700+ years of experience, Sherwin-Williams delivers the products, support and expertise you need, right where you need it.

Specialty Products, Inc. (SPI)

After 40 years in the coating business, SPI has trained more industry professionals than any other polyurea manufacturer. Now offering more classes at more locations than ever before!

Mitsubishi Gas Chemical America
Performance Amine 1,3-BAC

A highly reactive cycloaliphatic diamine offering superior performance. Reasonable cost and curing efficacy makes it suitable for all types of epoxy resin applications.

US Minerals
US Minerals -
Black Magnum

With nationwide production and distribution capabilities, U.S. Minerals supplies a complete range of coal slag and other abrasives to meet all of your blasting needs.

Hempel (USA) Inc.

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

Minerals Research & Recovery


“Made in the USA!”

Why recycle waste from other countries? Go FASTER, CLEANER, at 1/3 THE COST with MR&R “All-American” Sharpshot®HP!!


Polyval Coatings
Polyflex® Polyurea Linings

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

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   |   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