Dutch paints group AkzoNobel said it would target a 13-15% core profit margin and €20 billion ($26.69 billion) in annual sales as it joins other chemicals firms tapping emerging markets growth.
The world's largest coatings company has almost completed the integration of British paints firm ICI, which it bought in Jan. 2008, having cut jobs and closed factories to achieve a 14% core profit margin a year ahead of schedule.
At a strategy update in London, the maker of brands Dulux, Sikkens and Glidden said it would now target an earnings before interest, depreciation and amortization (EBITDA) of 13-15% margin. AkzoNobel also said it would target €1 billion in sales in India and €1.5 billion in sales in Brazil as part of a push to grow sales to €20 billion per year in the medium-term. Sales in 2009 were €13.9 billion.
"We are now entering a new chapter of accelerated and sustainable growth," Chief Executive Hans Wijers said in a statement.
Dutch peer and supplier DSM has already outlined plans to double sales in China to over $3 billion by 2015 as it aims to increase sales in high-growth economies to 50% of group sales, up from the current 32%.
AkzoNobel shares trade at 13.85 times estimated earnings, cheaper than PPG, which trades at 14.82, and Sherwin-Williams, which trades at 16.36 times.
