Akzo Nobel announces 6% top-line growth from present operations
21 Jul '05
7 min read
Autonomous growth 4 percent – prices up 6 percent; volumes down 2 percent
Continued increases of raw material prices – particularly in the industrial businesses
Decorative Coatings – slow market conditions in Europe; rest of world doing better
Industrial activities – coil and wood coatings in Europe under pressure
Car Refinishes – some signs of recovery; restructuring ongoing
Acquisition of Swiss Lack announced
Coatings revenues continued to grow in the second quarter, up 7 percent to EUR 1.5 bln. Compared to the second quarter of 2004, prices were up 6 percent, but volumes were down 2 percent, mainly in Europe. Acquisitions added 3 percent to revenues. EBIT fell 6 percent to EUR 140 mln. The EBIT margin was 9.3 percent (2004: 10.6 percent).
Frohn commented: “As expected, we've seen a pick-up in revenues in the second quarter. They were able to largely offset the impact of higher raw material prices by successfully increasing our selling prices. Raw materials price increases continued to affect our oil-based products particularly in our Protective Coatings business. Economic conditions in Europe remain difficult, but Asia continues to be a growth story, especially in the Marine and Protective and Decorative segments.”
Chemicals – impact of energy prices and incidentals
Revenues present operations: up 2 percent to EUR 963 mln (2004: EUR 941 mln)
EBIT present operations: up 12 percent to EUR 77 mln (2004: EUR 69mln)
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