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AkzoNobel Announces COVID-19 Response

Wednesday, April 15, 2020

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Global coatings manufacturer AkzoNobel (Amsterdam) issued a press release late last month, announcing its response to the ongoing effects of the COVID-19 pandemic.

According to AkzoNobel, as a result of COVID-19’s market disruption, the company has decided to pause key portions of its transformation and is suspending its Winning Together: 15 by 20 strategy. However, once markets normalize, AkzoNobel intends to resume its positive momentum and drive performance in line with industry frontrunners.

AkzoNobel

Global coatings manufacturer AkzoNobel (Amsterdam) issued a press release late last month, announcing its response to the ongoing effects of the COVID-19 pandemic.

“It’s clear COVID-19 is having a huge impact—for you, for us at AkzoNobel, and for the whole world,” said AkzoNobel CEO, Thierry Vanlancker.

“Our priority right now is the health and safety of our employees, their families, and our partners. At the same time, we’re taking all reasonable steps to continue serving our customers, some of whom are relying on us to provide products across a whole range of critical industries.

In reviewing its fourth-quarter financial report, AkzoNobel notes that it has a strong balance sheet and is still in a solid cash position. As of Dec. 31, net cash and cash equivalents were 1.2 billion euros ($1.3 billion), in addition to €1.3 billion in unutilized revolving credit facility with a maturity of 2025.

The company adds that its next bond maturity is 750 million euros in July 2022, and that it is committed to retaining a strong investment grade credit rating.

Vanlancker adds: “Headwinds related to COVID-19, including unpredictable and lower end market demand as well as various measures impacting our business operations, are increasing for most parts of the world and will have a significant impact during Q2. In China, activity is gradually returning to normal after being significantly impacted in Q1.

“We’re closely monitoring the pandemic situation and taking all necessary measures, including steps to rapidly reduce costs and carefully manage cash flows in the short-term. The significant market disruption forces us to pause key parts of our transformation and hence to suspend our 2020 financial ambition. Once markets normalize, we remain eager and passionate to resume our Winning together: 15 by 20 momentum to drive AkzoNobel’s performance in line with industry frontrunners.”

Financial results for AkzoNobel’s first quarter are slated to be announced on April 22, however, Vanlancker believes that the COVID-19 impacts will have more of a significant impact in the second quarter.

Additionally, at the end of the month, the company intends to host its Annual General Meeting of shareholders on April 23. Although, given the circumstances, AkzoNobel strongly encourages its shareholders to exercise their voting rights via proxy or to attend and vote virtually.

View all of PaintSquare Daily News' coverage on COVID-19, here.

   

Tagged categories: AkzoNobel; Asia Pacific; Business conditions; Business management; Business matters; Business operations; Coating Business; Coatings; Coatings manufacturers; COVID-19; Earnings reports; EMEA (Europe, Middle East and Africa); Finance; Latin America; North America; Program/Project Management; Project Management; Z-Continents

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