AkzoNobel Third Quarter 2014 Income Rises 11%
AkzoNobel N.V. recently reported positive volume growth and, for the fifth consecutive quarter, an improvement in return on sales—from 8% to 9.1%. Operating income grew 11% to €335 million (~ $423 million), compared to €303 million (~ $383 million) in 2013, reportedly reflecting the benefits of ongoing operational efficiency programs. Net income attributable to shareholders was €205 million (~ $259 million), vs. €155 million (~ $196 million) in 2013, reportedly due to higher operating income and lower finance expenses. Revenue for the third quarter declined 2%, with volume growth being offset by negative currency effects and divestments.
“AkzoNobel delivered a solid Q3 performance, despite continued economic uncertainty,” said Ton Büchner, CEO. “Q3 was also notable for several achievements, including being ranked first in our industry on the Dow Jones Sustainability Index for the third year running. In addition, our Human Cities initiative gathered momentum when we made a commitment to the Clinton Global Initiative and partnered with The Rockefeller Foundation through its 100 Resilient Cities program. We also developed coatings technology for the world’s first fully recyclable and compostable paper cup, and we broke ground on a new Decorative Paints site in Chengdu, China.”
Decorative Paints segment volumes were reportedly flat compared with the previous year. Market conditions in Europe remained challenging, while volumes were higher in Asia. Performance Coatings volumes were up, while revenue was flat on 2013 as price/mix and adverse currencies offset higher volumes.
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