Coatings Industry News

Main News Page


AkzoNobel Releases Q4, 2019 Numbers

Thursday, February 13, 2020

Comment | More

Global coatings manufacturer AkzoNobel (Amsterdam) released its fourth quarter and end-of-year financial reports Wednesday (Feb. 12), revealing a 3% decrease in revenue for Q4, and a reportedly flat revenue for the full year, with a positive price/mix of 4%.

Financial Overview

For the company’s fourth quarter, revenue was down 3% and lowered by 4% in constant currencies, with the 1% positive price/mix offset by 4% due to lower volumes. Despite softer end market demand, adjusted operating income reported a 23% increase, or 223 million euros compared to 2018’s 181 million euros. Volumes were also reportedly 4% lower.

Photos: AkzoNobel

Global coatings manufacturer AkzoNobel (Amsterdam) released its fourth quarter and end-of-year financial reports Wednesday (Feb. 12), revealing a 3% decrease in revenue for Q4, and a reportedly flat revenue for the full year, with a positive price/mix of 4%.

Operating income for the quarter was up from 2018’s 68 million euros, totaling 173 million euros and for the year, increased by 39% to 841 million euros and was attributed to transformation costs and non-cash impairments, partly offset by a gain on disposal following asset network optimization.

ROS, excluding unallocated costs, was up 12%.

Decorative Paints

The ROS for the company’s Decorative Paints segment for the fourth quarter totaled 9.9%, up from 2018’s 5.8%. There was also a 2% positive price/mix driven by softer end market demands.

Adjusted operating income increased to 87 million euros, up from 2018’s 52 million euros, driven by margin management, cost savings and lower raw material costs more than offsetting lower volumes.

Volumes were 4% lower in comparison to last year’s especially strong fourth quarter, which was also attributed to a softer end market demand, according to AkzoNobel.

Performance Coatings

The ROS for the Performance Coatings’ fourth quarter was up at 11.7%, with a flat price/mix while volumes were lower in all businesses mainly due to softer end market demand, including the automotive industry.

The ROS for the Performance Coatings’ fourth quarter was up at 11.7%, with a flat price/mix while volumes were lower in all businesses mainly due to softer end market demand, including the automotive industry.

Marine and Protective Coatings Revenue was down 2% in constant currencies. Profitability continued to improve due to measures focused on restructuring and right-sizing, particularly in Marine Coatings. Powder Coatings also saw the same numbers, recording a 2% decrease in constant currencies.

The segment’s revenue was down 3% and decreased 4% in constant currencies. Adjusted operating income saw a 6 million-euro increase at 159 million euros, over 2018’s 153 million euros, which was largely driven by margin management and cost control.

End-of-Year Numbers

For AkzoNobel’s 2019, revenue was reportedly flat, though it experienced a positive price/mix of 4% with acquisitions contributing 1% and was offset by 5% lower volumes due to the company’s value over volume strategy.

Adjusted operating income was 991 million euros, up 24% from 798 million euros in 2018. Operating income was 841 million euros, which includes the adverse impact of 150 million euros, a loss that is connected to transformation costs and non-cash impairments, partly offset by a gain on disposal following asset network optimization.

End-of-year numbers for the Decorative Paints segment saw flat revenue, with a 1% increase in constant currencies. Pricing initiatives contributed to an 4% positive price/mix. Acquisitions contributed 2%.

Adjusted operating income was 418 million euros, up from 346 million euros in 2018. Overall operating income increased to 425 million euros and was positively impacted by 7 million euros due to gains from asset network optimization and was partially offset by transformation costs.

As for Performance Coatings, revenue was flat and there was a 1% decrease in constant currencies. Adjusted operating income clocked in at 688 million euros, an increase from last year’s 629 million euros, which was largely attributed to pricing initiatives, cost control and lower volumes.

“Our 2019 results show we are on track with our transformation. We made good progress, despite higher raw material costs and softer end market demand,” said AkzoNobel CEO, Thierry Vanlancker. “We kickstarted a 50 million euro investment in our US wood coatings business, completed the acquisition of Mapaero to strengthen our global position in aerospace coatings and expanded our Paint the Future innovation ecosystem.

“The real driving force behind AkzoNobel’s achievements has been our dedicated and diverse colleagues around the world. Together, we remain fully focused on delivering our Winning Together: 15 by 20 strategy during the year ahead.”

   

Tagged categories: AkzoNobel; Asia Pacific; Business management; Business matters; Business operations; Earnings reports; EMEA (Europe, Middle East and Africa); Finance; Latin America; North America; Program/Project Management; Z-Continents

Comment Join the Conversation:

Sign in to our community to add your comments.


Advertisements
 
DeFelsko Corporation

 
KTA-Tator, Inc. - Corporate Office

 
Sauereisen, Inc.

 
Tarps manufacturing, Inc.

 
SAFE Systems, Inc.

 
WEFTEC Show

 
 
 

Technology Publishing Co., 1501 Reedsdale Street, Suite 2008, Pittsburgh, PA 15233

TEL 1-412-431-8300  • FAX  1-412-431-5428  •  EMAIL webmaster@paintsquare.com


The Technology Publishing Network

PaintSquare the Journal of Protective Coatings & Linings 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   |   Support   |   Site Map   |   Search   |   Contact Us