Essential reading for retailers and suppliers in the home improvement market

Akzo misses Q3 earnings due to "strong headwinds"

Published: 18 October 2017 - Kiran Grewal

Akzo Nobel released its Q3 2017 results today, reporting a second profit warning since the failed takeover approach from PPG industries earlier this year. The report showed volumes were 2% higher overall, driven by Decorative Paints and Performance Coatings, while flat for Specialty Chemicals, despite significant global supply chain disruptions. Revenue was up 1%, mainly due to volume growth and acquisitions, partly offset by adverse currency effects.

In Decorative Paints, EBIT was adversely impacted by higher raw material costs, not yet fully compensated, and geographical/ product mix effects. Akzo has stated that appropriate measures are being taken to address higher raw material costs, including increased selling prices and additional cost control.

In Specialty Chemicals, EBIT was up 1% with favorable price/mix developments and cost savings, partly offset by adverse currencies and global supply chain disruptions.

In Europe, Middle East and Africa (EMEA), revenue reduced 4%, due to "unfavorable" currencies, most notably the pound sterling, and price/mix effects. Demand trends differed per country in the region and uncertainty continued in some markets. Growth was visible across much of EMEA, while the UK was affected by lower consumer confidence. In Q3, Akzo has opened a "highly efficient" plant at Ashington that will be the production center for Dulux.

Akzo reported lower-than-expected third-quarter operating earnings of 383 million euros on Wednesday, citing "headwinds" at its marine coatings business and margin pressures from rising raw material costs.

Analysts polled by Reuters had expected earnings before interest and taxes (EBIT) at 432 million euros, down from 442 million euros in the same period a year ago.

Akzo has struggled after rejecting a 26 billion euros takeover offer from U.S. rival PPG Industries, seeing its CEO and CFO resign and issuing a profit warning in September. 

The company also said today that it would hold an extraordinary general meeting on Nov. 30 to vote on the separation of its Specialty Chemicals unit and said a €1 billion special cash dividend as advance proceeds will be paid on Dec. 7, following shareholder approval for the separation.



Source: Akzo Nobel press release


(Your email address will not be published)
Already Registered?
Sign In
Not Yet Registered?
Printable View E-mail Bookmark

What do you think?

Has the trend for more outdoor heating and lighting products helped extend the window for selling outdoor lines?

Latest reader comments

re: Acana tackles carpet moths with carpet & fabric moth killer and freshener

Stephanie Ferrante
Hello, could someone from customer service call me - I am located in the US and we have a moth/ carpet issue. I am going to purchase this ...

re: Tommy Walsh: 'I'm really proud of my £1 tools'

Gregory ciacci
paint brushes good but paint roller sponge keeps fallinf off as i am painting doesnt help if i am doing big front room wall like i have ...

re: B&Q overhauls kitchen and bathroom sales process

No BQ employees affected - how come???when they're unemployed and losing a wage.....derrrrr...

re: Kingfisher opens first net zero energy store

Guy Eames
well done kingfisher! I’m going to make this store my main diy supply base. Perfect example of where sustainability is a win-win. ...

re: The Range to take over Homebase store in Cardiff

susan way
please can you tell me when the new range will be open on culverhouse cross is please thank you...

Most read stories

Blog and Comment

Dawn of a new age in customer service

Customer service used to be about answering telephones and responding to written requests, but our fast paced, social media driven society ... Read More >>