Weak European Demand Impacts Akzo Nobel’s First Quarter Revenue
Akzo Nobel N.V. recently reported a 7% revenue decrease in the 2013 first quarter compared with the same period last year, reportedly due to weak demand in European markets and divestments. Operating income for the first quarter was 8% lower at €217 million (~ $282 million). Revenue in Decorative Paints declined 5%, reportedly due primarily to lower volumes in Europe, price/mix effects and currencies. Operating income was €43 million (~ $55 million), an increase compared to the same period 2012, reflecting lower restructuring charges and lower costs in mature markets.
Performance Coatings revenue declined 3% compared with the previous year’s first quarter. Revenue in Specialty Chemicals was 11% lower due to divestments and lower volumes, mainly in construction-related products and the pulp bleaching and plastics industries.