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AkzoNobel Reports Q2, Half-Year Revenue Dips

Thursday, July 23, 2020

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Global coatings company AkzoNobel released its 2020 second-quarter financial report Wednesday (July 22) and reported a 19% drop in revenue caused mainly by the COVID-19 pandemic.

On the flip side, the company reported multiple cost savings maneuvers for margin management and noted that net cash from operating activities actually improved year over year from 152 million euros to 308 million euros.

“Despite lower end market demand, our business return on sales increased 30 basis points to 14% for the second quarter as a result of continued focus on margin management and cost-saving measures,” noted AkzoNobel CEO Thierry Vanlancker.

Financial Overview

On the whole for Q2, AkzoNobel’s revenue landed at 1.9 billion euros, down from 2.5 billion this time last year. When looking at numbers for the first half of the year, the company reported revenue of 4 billion euros, down from 4.6 billion.


Global coatings company AkzoNobel released its 2020 second-quarter financial report Wednesday (July 22) and reported a 19% drop in revenue caused mainly by the COVID-19 pandemic.

Adjusted operating income was down year over year from 305 million euros to 238 million euros. As a result of the losses and the predicted more losses to come, the company has suspended several initiatives.

Decorative Paints

In the Decorative Paints segment, revenue was 10% lower, dipping from 997 million euros to 899 million euros. For the half-year, the segment’s revenue also dropped from 1.8 billion euros to 1.65 billion euros.

Adjusted operating income, however, increased to 175 million euros (from 2019’s 136 million euros). The company says that margin management and cost savings more than offset lower volumes, resulting in ROS of 19.5% (compared to 2019’s 13.6%).

Performance Coatings

The Performance Coatings segment took the largest overall hit as revenue was 24% lower this quarter year over year (from 1.4 billion euros to 1.08 billion euros), which was attributed to the impact of COVID-19, but more specifically its impact on the automotive and aerospace industries.

Adjusted operating income was down to 103 million euros from the 197 million euros reported last year; the company points to the adjoining lower sales volumes in addition to revenue and income.

Looking Ahead

The company noted that it will continue to suspend some initiatives.

“AkzoNobel has suspended its 2020 financial ambition in response to the significant market disruption resulting from the pandemic,” AkzoNobel said.

“COVID-19 will continue to impact the second half of 2020, although demand trends differ per region and segment in an uncertain macro-economic environment. Raw material costs are expected to have a favorable impact for the second half of 2020. Continued margin management and cost-saving programs are in place to address the current challenges.”

Vanlancker added: “I’m extremely proud of our teams around the world, who have continued to focus on serving our customers and delivered this resilient performance while also helping many communities affected by the pandemic.

“Our rigorous cash management and strong balance sheet put us in a sound position to deal with the ongoing uncertainty from COVID-19 as we strive to deliver powerful performance as a frontrunner in our industry.”


Tagged categories: AkzoNobel; Asia Pacific; Business matters; Earnings reports; EMEA (Europe, Middle East and Africa); Finance; Good Technical Practice; Latin America; North America; Z-Continents

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