Netherlands: Difficult Paint Business Akzo Nobel Grows Despite Challenging Market Conditions
The manufacturer of paints, coatings and specialty chemicals, Akzo Nobel reported its first quarter 2016 results with positive volume developments.
Amsterdam/Netherlands – According to the company's report, growth in volume was registered in all three Business Areas despite a challenging market environment.
Operating income increased 17 percent to € 357 million and EBIT increased 9 % to € 334 million, reflecting continuous improvement initiatives and lower costs, partly offset by adverse currency effects. Revenue was down 4 % compared with the same period last year as positive volume development was more than offset by adverse currency effects, price/mix and divestments. Profitability improved, with return on sales at 9.7 % compared with 8.5 % last year.
CFO Maëlys Castella: "During the first quarter we grew volumes in all Business Areas and continued to improve profitability despite a challenging market environment and negative currency effects. Net income improved by 50 % and we continue to further strengthen our businesses by delivering on our strategy of continuous improvement, organic growth and innovation. During the period we agreed an offer for the acquisition of BASF's Industrial Coatings division which fits well with our existing business, adding to our offering of essential solutions for our customers."