02.14.19
Q4 2018 highlights:
"Another highlight was the introduction of our Paint the Future startup challenge," Vanlancker added. "It's designed to combine our global scale, know-how and expertise with the ingenious solutions of startups and scale-ups in the dynamic world of paints and coatings, making sure AkzoNobel is the reference when it comes to open innovation."
Other highlights:
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Revenue up one percent and up four percent in constant currencies1, with positive price/mix partly offset by lower volumes;
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Pricing initiatives contributed to a positive price/mix of nine percent overall in response to higher raw material cost;
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Volumes were seven percent lower (excluding China, volumes were two percent lower). Volumes in China normalized at 2016 level versus an exceptionally strong quarterly volume in Decorative Paints China last year;
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ROS, excluding unallocated costs, was up at nine percent (2017: 8.4 percent);
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Completed sale of Specialty Chemicals business on Oct. 1, 2018; net profit on the sale was €5.8 billion;
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Acquisition of Colourland Paints in Malaysia and minority interest share to obtain full ownership of the AkzoNobel Swire Paints joint venture in China;
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Adjusted operating income was up €3 million at €181 million (2017: €178 million) driven by pricing initiatives and cost-saving programs;
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Net income from total operations at €5,849 million (2017: €75 million), including discontinued operations at €5,814 million (2017: €46 million)
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Revenue four percent lower, although up one percent in constant currencies, with positive price/mix partly offset by lower volumes;
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Adjusted operating income at €798 million (2017: €905 million) impacted by adverse currencies, higher raw material costs and lower volumes, not yet fully offset by pricing initiatives and cost-saving programs;
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ROS excluding unallocated costs, at 10.6 percent (2017: 10.6 percent); ROI4 at 12.6 percent (2017: 13.9 percent);
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Final dividend proposed of €1.43 per share (post consolidation)
"2018 was a landmark year for AkzoNobel as we completed the sale of the Specialty Chemicals business and began returning the vast majority of proceeds to our shareholders," AkzoNobel CEO Thierry Vanlancker said. "Despite strong headwinds, we made good progress on delivering our Winning together: 15 by 20 strategy with an increased business return on sales at nine percent in the fourth quarter compared to 8.4 percent last year and 10.6 percent in the second half of the year versus 9.2 percent in the same period in 2017.
"We're now a focused paints and coatings company and are channeling all our experience, energy and passion into being recognized as the reference in our industry," the CEO said. "We continue to invest in growth and in 2018, we made multiple bolt-on acquisitions, including Fabryo in Romania, Xylazel in Spain, Colourland Paints in Malaysia and the AkzoNobel Swire Paints joint venture in China. These deals will help accelerate our momentum as we continue to build AkzoNobel into an industry leader."Another highlight was the introduction of our Paint the Future startup challenge," Vanlancker added. "It's designed to combine our global scale, know-how and expertise with the ingenious solutions of startups and scale-ups in the dynamic world of paints and coatings, making sure AkzoNobel is the reference when it comes to open innovation."
| AkzoNobel in € millions | Q4 2017 | Q4 2018 | Delta% | Delta% CC1 |
| Revenue | 2,283 | 2,308 | 1% | 4% |
| Adjusted operating income3 | 178 | 181 | 2% | |
| ROS excluding unallocated costs2 | 8.4% | 9.0% |
Other highlights:
AkzoNobel launched its Paint the Future startup challenge.
In December, the company acquired the minority interest share to obtain full ownership of the AkzoNobel Swire Paints joint venture. A month earlier, AkzoNobel acquired Colourland Paints (Malaysia).
To celebrate the delivery of Boeing's 787th 787 aircraft, AkzoNobel's "base coat/clear coat" system was used as part of a one-off design painted onto the landmark plane, which was ordered by China Southern Airlines. Boeing also hit another milestone recently, delivering its 1,000th new aircraft to have been painted with AkzoNobel's Aerodur 3001/3002 paint system.
The report for the full-year and fourth quarter 2018 can be viewed and downloaded here.
To celebrate the delivery of Boeing's 787th 787 aircraft, AkzoNobel's "base coat/clear coat" system was used as part of a one-off design painted onto the landmark plane, which was ordered by China Southern Airlines. Boeing also hit another milestone recently, delivering its 1,000th new aircraft to have been painted with AkzoNobel's Aerodur 3001/3002 paint system.
The report for the full-year and fourth quarter 2018 can be viewed and downloaded here.
