Akzo Nobel: Q2 a ‘Good Quarter’
Akzo Nobel has announced a revenue increase of 13% (5% positive currency translation effect) for the second quarter of 2010 and the early achievement of the 14% Ebitda margin target set for the end of 2011.
Strong revenue gains were achieved in the higher growth markets in all business areas. Revenue improved 8% at Decorative Paints due primarily to its strong footprint in these markets, where the business is growing faster than the market, offset by lower or negative revenue development in mature markets. Both Performance Coatings and Specialty Chemicals booked double-digit revenue growth (19% and 14% respectively), mainly driven by higher volumes.
Ebitda for the second quarter was €614 million, 21% higher than in 2009, with total net income up 76% to €273 million.
During the quarter Akzo Nobel announced the $1.3 billion sale of National Starch, completing the divestments of non-core former ICI businesses, a $3 billion revenue target for China by 2015, and the completion of the acquisition of the powder coatings activities of the Dow Chemical Company.
While Q2 was clearly a good quarter, Akzo Nobel said it remains vigilant about the pace and sustainable nature of the economic recovery. Nevertheless, the company is cautiously optimistic about the prospects for the remainder of the year.
