Akzo Nobel has announced its operating income fell 23% to 225 million euros (£199.92 million), however Decorative Paints return on sales1 up at 12.2% (2017: 11.6%) driven by 5% higher selling prices. The first wave of price increases were successful in Q1 2018, with the company reporting a successful separation of its Speciality Chemicals to The Carlyle group and GIC for €10.1 billion.
In the paints and coating sector, Akzo has reported in Q2, revenue is 3% lower, although up 2% in constant currencies, with positive price/mix partly offset by lower volumes.
Adjusted operating income at €225 million (2017: €294 million) mainly impacted by €21 million adverse foreign currencies and €20 million non-recurring items.
Operating income includes the adverse impact of identified items of €33 million, mainly related to the transformation.
Return on sales at 9.2% (2017: 11.6%), up for Paints and improving for Coatings; return on investment at 12.2% (2017: 14.4%)
Net income from total operations at €271 million (2017: €301 million), including discontinued operations at €164 million (2017: €134 million).
AkzoNobel CEO, Thierry Vanlancker, commented: "Disciplined execution on the first phase of our transformation into a focused Paints and Coatings company is creating a fit-for-purpose organization and delivering cost savings.
"Revenue in constant currencies increased in all Performance Coatings segments except Marine and Protective Coatings. Decorative Paints delivered a particularly strong performance with pricing initiatives and cost savings compensating for higher raw material costs.
"We continued investing in our market leading positions, including the acquisition of the Fabryo decorative paints business in Romania and the opening of a new powder coatings plant in Changzhou, China."