Akzo Nobel Third Quarter Revenue Drops 5%
Akzo Nobel N.V. recently reported third quarter revenues of €3,778 million (~ $5,213 million), a decrease of 5% compared with the same period last year. The decrease was reportedly a consequence of adverse currency effects and divestments.
Decorative Paints revenues of €1,136 million (~ $1,567 million) in the third quarter were stable vs. the previous year, with higher volumes offset by adverse currency effects. Although conditions in Europe remained challenging in general, global volumes were up compared to the same quarter last year.
Quarterly revenue at Performance Coatings declined 4% to €1,415 million (~ $1,952 million) compared with last year, with the decline attributable to adverse currency effects. While overall volumes were up 2%, weak demand in Europe reportedly continued to impact all businesses.
Specialty Chemicals revenue was 10% lower at €1,252 million (~ $1,727 million), reportedly primarily as a result of the divestment of Chemicals Pakistan and negative currency effects. Overall volumes were flat compared with the prior-year period.
“The trading environment behind these results has not changed in that demand remains soft and on a comparative basis Q3 last year was particularly weak,” said Keith Nichols, chief financial officer. “Nevertheless, the actions we have taken to address the challenges our businesses are facing are starting to have a positive effect; the return on sales before restructuring charges has improved in all three business areas due largely to our performance improvement actions.”
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