Akzo Nobel announces 6% top-line growth from present operations
21 Jul '05
7 min read
Autonomous growth of 3 percent – mainly higher selling prices More pressure from raw material and energy prices and slowing economy – affecting most units Base Chemicals – scheduled maintenance stop at Rotterdam site Pulp & Paper Chemicals – impacted by a two-month strike in the pulp & paper industry in Finland Divestment program – on track
Chemicals' second-quarter revenues of EUR 963 mln were 2 percent higher than last year. With more uncertain economic conditions in the various regions and markets, volumes were flat, while prices were up 3 percent from last year. Currency translation had a negative effect of 1 percent. The EBIT margin was 8.0 percent (2004: 7.3 percent).
The operational performance of the Chemicals activities decreased EUR 11 mln, mainly reflecting the impact from higher energy and raw material prices–affecting almost all businesses–and the effects of some incidents. Base Chemicals was affected by a scheduled maintenance stop at the Rotterdam site, while Pulp & Paper Chemicals felt the impact of a two-month strike in the pulp & paper industry in Finland.
Frohn: “Clearly there are stronger headwinds from energy and raw materials prices this quarter and sluggish economic conditions have not helped. Looking beyond these factors, and the incidentals, the strategy to focus on five new chemicals platforms is in place, the underlying businesses are focused on their performance roadmaps and divestments are on track.”
marketing@alchempro.com
