Decorative paints achieved a revenue increase of six percent in the second quarter, mainly due to favorable price/mix effects and positive currency effects. EBITDA was down eight percent, reflecting weaker European market conditions. Restructuring continues in mature markets, particularly in Europe.
In performance coatings, revenue increased 12 percent, supported by margin management, acquisitions and currency effects. EBITDA was up 25 percent compared with the previous year, further supported by improvements in operational efficiency. Volume declined, although there was significant variability between individual activities.
AkzoNobel continued to see inflation in the overall raw materials portfolio, although less than last year. The main driver of input cost inflation is TiO2. In the second quarter, the company saw an increase in supply from China and a reduction in global demand. However, in total, the company continues to expect an increased average cost for the year.
“The overall performance in our second quarter results is solid given the increasingly difficult economic environment,” said CEO Ton Büchner. “In my first few months as CEO, I have spent a great deal of time with our customers, employees and shareholders, and have also visited many of our factories around the world. My initial observations are that we have solid businesses and many strong market positions. The opportunity remains to increase return on capital, cash generation and margins, which is why the immediate priority for me and the leadership team is performance improvement.”