04.24.19
AkzoNobel reported its first quarter 2019 results.
-
Adjusted operating income nine percent higher at €163 million
- Raw material inflation continued; variable costs €77 million higher;
- Ongoing pricing initiatives resulted in price/mix up six percent;
- Cost-saving programs delivered €38 million;
- Volumes lower due to value over volume strategy -
ROS, excluding unallocated costs, increased to 9.1 percent (2018: 8.7 percent)
- Decorative Paints continued good momentum in a seasonally low quarter;
- Automotive and Specialty Coatings impacted by order pattern;
- On track to return a total of €6.5 billion to shareholders;
- €639 million cash payments to main UK pension plans
"We're encouraged by the underlying business performance during this seasonally low quarter," CEO Thierry Vanlancker said. "Our pricing initiatives and cost-saving programs resulted in nine percent higher profit and return on sales up at 9.1 percent.
"Decorative Paints demonstrated good momentum and all Performance Coatings businesses increased profitability, apart from Automotive and Specialty Coatings which was impacted by order pattern," the CEO continued.
"Our transformation plans for creating a more fit-for-purpose organization are on track and delivered savings of €38 million during the quarter. We're maintaining our focus as we continue to deliver towards our Winning together: 15 by 20 strategy," Vanlancker added.
|
AkzoNobel in € millions |
Q1 2018 |
Q1 2019 |
Delta% |
Delta% CC3 |
|
Revenue |
2,176 |
2,185 |
-% |
1% |
|
Adjusted operating income1 |
149 |
163 |
9% |
|
|
ROS excluding unallocated costs2 |
8.7% |
9.1% |
|
|
Recent highlights include a Let's Colour project in Turkey, a new AkzoNobel coated livery for McLaren F1, a Dulux concept store in Shanghai, and a new R&D innovation campus.
The report can be accessed here.
