25 July 2017
VIEW FULL PRESENTATION H1 2017
DETAILS
AkzoNobel publishes half-year and Q2 2017 results
Half year:
Volumes up 2%, driven by
Decorative Paints and Specialty Chemicals
Revenue up in all Business Areas and 4% overall,
mainly due to volume growth and acquisitions
EBIT1 up 1% at €837 million (2016: €825 million),
mainly due to volume growth and continuous improvement,
partly offset by higher raw material costs
and continued weak demand in Marine and Protective Coatings
Outlook:
AkzoNobel continues to anticipate positive developments
for EMEA (excluding the UK), North America and Asia,
improving during the year,
while Latin America is expected to stabilize.
Market trends will remain challenging for the marine
and oil and gas industries.
The company has improved its ability to respond
to developments in its markets
and continues taking appropriate measures, including
* structure to drive operational excellence
* and additional cost control,
to deal with higher raw material prices in an inflationary environment.
The company continues to expect
EBIT for 2017 to be around €100 million higher than 2016,
as a result of growth momentum and continuous improvement,
assuming no further material changes in market
and economic dynamics, including foreign currencies.
CEO Thierry Vanlancker
“It is a privilege to lead AkzoNobel,
a company full of great people focused on delivering
for our customers every day."
“I was involved in developing our strategy
to accelerate sustainable growth and value creation
for all our stakeholders."
We will continue to deliver on the plans
for the creation of two focused, highperforming businesses –
Paints and Coatings and Specialty Chemicals.
The separation process remains on track.
“During the first half of the year,
we invested to significantly increase our production capacity
around the world and launched two of our premium
Decorative Paints brands in key markets."
We also announced two acquisitions
to strengthen our Performance Coatings business.
“We are putting in place a new Executive Committee structure
designed to build momentum across the business
and maintain our focus on operational excellence."
“Following a record performance for AkzoNobel in the first quarter,
we continued to see growth across all our business areas
with the exception of challenging market conditions
in the marine and oil and gas industries,
and inflationary pressures which impact part of our business."
Mitigation plans are in place and we will see
the benefit of these later in the year.
“As part of our ongoing program to strengthen the relationship
with our shareholders, we are announcing
a range of new activities including an EGM,
which will be held on September 8."
“We remain focused on executing our new strategy
and continue to expect
EBIT for 2017 to be around €100 million higher than 2016,
as a result of growth momentum and continuous improvement.
This assumes no further material changes in market
and economic dynamics, including foreign currencies.”
For more information
Corporate Media Relations
Contact: Andrew Wood
T +31 (0)88 – 969 7833
Corporate Investor Relations
Contact: Lloyd Midwinter
T +31 (0)88 – 969 7856
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