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

 

Download our free Marine Industry Coating Systems eResource Book

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
Rapid cure, high temperature lining

AkzoNobel introduces Enviroline 405HTR, an ultra-low VOC lining. 405HTR offers rapid return to service, and excellent chemical resistance at high temperatures.


Carboline Company
Fireproofing Solutions

Pyroclad® X1 Thermo-Lag® Pyrocrete® – protecting against hydrocarbon and jet fires, explosions, and cryogenic spills.


Minerals Research & Recovery

HIGH PERFORMANCE ABRASIVES


“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!!

WATCH THE VIDEO


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


Armakleen Company, The
ARMEX when nondestructive cleaning is critical

The gentle physical propriety of baking soda but yet aggressive cleaning ability is what makes ARMEX the only choice for nondestructive abrasive blasting.


Specialty Products, Inc. (SPI)
SIGN UP TODAY – HANDS ON TRAINING

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!


BASF
New resins from BASF will have metals loving water:

Excellent corrosion resistance, low VOC, high gloss, thin films basf.us/industrialcoatings
polyorders@basf.com
800-231-7868


Binks/DeVilbiss
Built for Tough Jobs

From Epoxies to Urethanes to other high solid coatings, the new Binks Airless 75 delivers a great finish using an ergonomic design. Visit binks.com for more information.


DRYCO
DEHUMIDIFICATION FOR
ANY SIZE PROJECT

Temporary climate control equipment. Dehumidifiers,
Heaters, A/C, Power, More…
Call: 866-379-2600


Modern Safety Techniques
Modern Safety Techniques

With our unique LTCat, we can help to provide clean, safe breathing air to your workers. Take a look at our Breathing Air Systems, we supply at least twice as much charcoal as our competitors! Modern

 
 
 
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