The third quarter saw AkzoNobel divest its Building Adhesives business (completed October 1) and announce plans to drive further efficiency and performance improvements within Functional Chemicals and in Germany, as well as plans to streamline the management structure in Decorative Paints to improve competitiveness. The company also published details of investments totaling more than €50 million in two new manufacturing facilities to meet growing demand in western China. AkzoNobel furthermore maintained its number one ranking in the Dow Jones Sustainability Index, heading the Materials industry group.
Decorative Paints revenues of €1,136 million in the third quarter were stable versus the previous year, with higher volumes offset by adverse currency effects. Although conditions in Europe remained challenging in general, global volumes were up on the same quarter last year. Lower costs and lower restructuring charges contributed to increased operating income for Q3 2013 of €107 million, more than double the previous year's figure.
Quarterly revenue at Performance Coatings declined 4 percent to €1,415 million compared with last year, with the decline attributable to adverse currency effects. Whilst overall volumes were up 2 percent, weak demand in Europe continued to impact all businesses. Q3 restructuring costs were lower in 2013 than a year earlier, as a result of which operating income showed an improvement, up 23 percent at €160 million.
Revenue in Specialty Chemicals was 10 percent lower at €1,252 million, primarily as a result of the divestment of Chemicals Pakistan and negative currency effects. Overall volumes were flat compared with a year earlier. Operating income was down 20 percent at €107 million, mainly as a consequence of one-off restructuring costs incurred as part of the performance improvement program in the Functional Chemicals Business Unit.