- On track to create two focused, high performing businesses
- Separation of Specialty Chemicals on track for April 2018: Specialty Chemicals business now reported as discontinued operations;
- Revenue, including discontinued operations, up 3% (up 4% excluding currency impact) at €14,575 million;
- EBIT, including discontinued operations, up 2% to €1,525 million;
- Operating income, including discontinued operations, at €1,396 million includes identified items of €129 million, mainly related to the transformation of AkzoNobel, including the separation of Specialty Chemicals;
- Net income attributable to shareholders at €832 million (2016: €970 million);
- Total dividend per share proposed for 2017 up 52% to €2.50 (2016: €1.65). €4.00 special cash dividend paid in December 2017 as advance proceeds related to the separation of Specialty Chemicals business;
- Net cash inflow from operating activities at €969 million (2016: €1,291 million);
2020 financial guidance reconfirmed:
- Paints and Coatings: 15% return on sales (ROS); return on investment (ROI) >25%;
- Specialty Chemicals 16% ROS; ROI >20%
- Revenue up 2% (up 4% excluding currency impact) and in both Business Areas, mainly due to volume growth and acquisitions, partly offset by unfavorable currency and price/mix;
- Volumes 2% higher; up 7% for Decorative Paints with growth in all regions, down 1% for Performance Coatings due to adverse conditions in the marine, and oil and gas industries;
- EBIT at €905 million (2016: €928 million), resulting from higher raw material costs, partly offset by increased selling prices, continuous improvement and cost control;
- ROS at 9.4% (2016: 9.8%). ROI at 13.9% (2016: 14.4%);
- Adjusted EPS from continuing operations at €2.56 (2016: €2.38);
- Three acquisitions to help grow the business;
- Opening of the most advanced and sustainable paints factory: Ashington, UK;
- Dulux voted healthiest brand in the UK
"We strengthened our leading global position in performance coatings through the acquisitions of V.Powdertech business for Powder Coatings, Flexcrete Technologies Ltd. for Protective Coatings and Disa Technology (Disatech) for Specialty Coatings,” he continued.
"In 2017, we opened the world's most advanced and sustainable paint plant in Ashington, UK. This will be the production center for our leading global brand, Dulux,” Vanlacker added. “Other examples of our focus on strengthening the business include a €13 million investment in a new innovation hub in the UK, and the opening of a new Performance Coatings facility in Chonburi, Thailand.
"In September, we were ranked number one on the Dow Jones Sustainability Index. During the year, we put particular emphasis on increasing our energy efficiency, reducing material waste and continuing to deliver more eco-premium solutions for our customers,” the CEO said.
"We are on track to create two focused, high performing businesses. The internal separation of the Specialty Chemicals business is complete and a full separation remains on track for April 2018,” Vanlacker concluded. “The transformation of AkzoNobel into a focused Paints and Coatings company is progressing well, with phase one on track to achieve €110 million savings in 2018, contributing directly towards delivering the 2020 financial guidance."
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