Durability + Design
 
About  |  Subscribe  |  Advertise  |  Connect 
Follow us on Twitter Like us on Facebook

 

Get your FREE e-resource: The Technology of Coatings in High-Rise Structures

D+D News

Main News Page


AkzoNobel Reports Revenue Increase for Q1

Friday, April 23, 2010

Comment | More

Akzo Nobel N.V. (AkzoNobel) reported first-quarter net income of 81 million euros (approximately $108 million), a decline of 7% from the first quarter of 2009. Increased sales for the company’s coatings businesses contributed to revenue growth of 6%, to 3.065 billion euros (appr. $4 billion).

Excluding one-time items, earnings before interest, taxes, depreciation, and amortization (EBITDA) was 258 million euros ($343.5 million), compared to 150 million euros for the first quarter of 2009.

CEO Hans Wijers said the results indicate “a good start to 2010, particularly in higher-growth markets, where our performance was strong.” He added that “while revenue growth across all AkzoNobel’s businesses has been solid, our Q1 performance compares with a particularly weak first quarter in 2009."

Coatings-business results

First-quarter revenue for the company’s Decorative Paints business was 1.056 billion euros (appr. $1.4 million), a gain of 7% from the first quarter of 2009. EBITDA for the business rose 71%, to 82 million euros ($109 million).

For the Performance Coatings business, first-quarter revenue was 1.048 billion euros (appr. $1.4 billion), up 6% from the prior-year period. The unit’s EBITDA rose 36%, to 143 million euros ($190 million).

Contributing to the Decorative Paints revenue increase was a 5% gain in volume, with revenue growth reported to be strong in higher-growth markets. Revenue rose 30% in Asia while holding steady in “mature” markets compared to 2009, the company said. Earnings in mature markets benefited from “synergies” and restructuring actions, and “closure and integration of multiple sites across Europe is running according to plan,” the company said.

Revenue growth for Performance Coatings was driven by an 8% increase in volumes, although marine maintenance activity was reported to be lower. The unit staged a recovery from a “difficult Q1 last year,” but most businesses “are still below pre-recession levels,” the company said, adding that volume recovery was evident in all activities, with the exception of the late-cycle marine and protective-coatings businesses.

‘Cautiously optimistic’ outlook

Wijers said the company will continue to feel pressure from further raw-material cost increases during the year, and he said the company remains cautious about the strength of the recovery. He said the company “will continue to focus on customers, cost reduction and cash generation, but we will also prioritize investments and initiatives to ensure that the company is able to capture growth."

The company said it remains on track to achieve its medium-term target of an EBITDA margin of 14% by the end of 2011. “The focus on customers, cost reduction, and cash generation continues, while investments to capture growth remain a priority, particularly in higher-growth markets,” the company said. “Although volumes remain below pre-recessionary levels in most businesses, increases in volume, first evident in Q2 2009, have continued more broadly and are a reason for cautious optimism.”

 

   

Tagged categories: AkzoNobel; Architectural coatings; Coatings manufacturers; Earnings reports; Economy; Finance; Protective coatings

Comment Join the Conversation:

Sign in to our community to add your comments.

Dumond Chemicals Inc.
Watch Dog® Wipe Out
Porous Surface Graffiti Remover

is formulated to effectively and easily remove existing graffiti from porous/unpainted masonry surfaces 15-30 minutes without surface damage while being both safe for the applicator and friendly to the environment.


AGC Chemicals
FEVE Resins Used On Joe DiMaggio Children’s Hospital Curtain Walls

Not only do LUMIFLON FEVE resin-based coatings provide added durability on metal-clad buildings, they are a leading product in the area of environmental sustainability.


Lignomat USA Ltd.
A dependable Source for Moisture Meters

Lignomat manufactures pin, pinless and in-situ probe meters for concrete and other building materials. Call 800-227-2105 to find the best moisture measuring device for your application.


Armorthane
Best Floor Coatings with Maximum Durability

Coat CONCRETE or WOOD flooring for wheel and foot traffic, chemical resistance, weather-proofing, indoors and outside. Variety of textures for beauty, resilience and safety.


KTA-Tator, Inc. - Corporate Office
KTA Inspection Instruments

Eliminate Application Uncertainties:
• Moisture Content
• Ambient Conditions
• Surface Preparation
• Coating Thickness
Call 1-800-KTA-GAGE
(800-582-4243)


Keim Mineral Coatings
Concrete Coatings penetrate, chemically bond and will never peel, blister or fade

Complete mineral silicate concrete repair and finish systems to solve concrete problems for decades long beauty and protection.


Atlas Material Testing Technology

Helping You Put Your Products To The Test

• Outdoor Accelerated
Weathering
• Laboratory Testing
Services
• Accelerated Weathering
Instruments

www.atlas-mts.com atlas.info@ametek.com

 
 
 

Technology Publishing Co., 2100 Wharton Street, Suite 310, Pittsburgh PA 15203-1951

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


The Technology Publishing Network

Durability + Design PaintSquare the Journal of Protective Coatings & Linings Paint BidTracker

 

© Copyright 2012-2015, Technology Publishing Co., All rights reserved