Solid first quarter for AkzoNobel
- Operating income up 42 percent at €306 million (2014: €216 million), reflecting the effects of process optimization, reduced restructuring expenses, lower costs and favorable currencies
- Revenue up 6 percent due to 8 percent favorable currency effects
- Improved performance with ROS at 8.5 percent (2014: 6.4 percent); and ROI at 10.6 percent (2014: 9.7 percent)
- Net income attributable to shareholders up 24 percent at €160 million
- Adjusted EPS up 25 percent at €0.76 (2014: €0.61)
- Net cash outflow from operating activities was €622 million (2014: €552 million)
- Overall market conditions remain challenging
- On track to deliver 2015 targets
Q1 2015 report (PDF, 465kb)
Nobel N.V. (AKZA.AS; AKZOY) today reported a solid first quarter with positive developments in all three Business Areas despite a challenging market environment.
CFO Maëlys Castella:
Performance Coatings continued to benefit from the de-layering and simplification of its business structure. Revenue was up in all businesses, benefiting from favorable currency effects and price/mix. Operating income increased 35 percent due to cost reductions generated by improvement activities, including the simplification of the business structure, cost control measures, currencies and lower restructuring expenses. Volumes increased in North America but declined in other regions, with performance across segments being mixed regionally.
Specialty Chemicals further improved its profitability. Revenue was up 6 percent as a result of favorable currency effects. Operating income rose 21 percent versus last year due to continuous improvement measures, cost focus, lower restructuring costs and favorable currency developments. Volumes were flat overall, with a mixed and volatile picture across segments and regions. Volumes in the US continued to perform well, while there was more modest growth in China.
anticipate that exchange rate movements and lower growth rates in high growth economies will principally determine the dynamics of 2015. The preparations made in 2013 and 2014 form a sound basis for improved performance. AkzoNobel remains on track to deliver its 2015 targets*.
*Overall targets for the full year 2015 are 9.0 percent return on sales and 14.0 percent return on investment.
Q1 2015 report can be downloaded via the AkzoNobel Report iPad app or read online at www.akzonobel.com/quarterlyresults.