Revenue up 8 percent to €4.1 billion, driven by volume and pricing, before currency headwind of 3 percent
Raw material inflation, challenging trading conditions and one-off factors lowered the quarter’s EBITDA to €551 million (2010: €614 million)
Total net income at €268 million (2010: €273 million)
Adjusted EPS (earnings per share) at €1.09 (2010: €1.18)
Additional performance improvement measures underway
Full-year 2011 EBITDA to be at least in line with the prior year, assuming no further deterioration in economic conditions
Akzo Nobel N.V. (AkzoNobel) today announced revenue growth of 5 percent for the second quarter of 2011, driven by volume and price.
While the overall top-line development has remained strong, the demand pattern has been volatile during the quarter, particularly in the mature markets. High growth markets have continued to perform strongly overall.
As already reported towards the end of the quarter, the escalation of raw material costs, estimated to be around 20 percent higher year-on-year has impacted performance for the second quarter. Furthermore, there were several prolonged large site maintenance stops resulting in higher costs.
Consequently, EBITDA was €551 million, 10 percent below the level of last year for the quarter. EBITDA margin remained at a healthy 13.4 percent level.
Operational Excellence Program
September 2010 the company announced a new Executive Committee to build on the company’s leadership positions by transferring best practices, adopting standard and consistent methodologies, and leveraging its scale.
As the next step in this process, AkzoNobel is implementing additional performance improvement measures and functional and operational excellence initiatives to sustainably underpin AkzoNobel’s performance. They will ensure that the company’s growth ambitions are delivered at or above the mid-point of its 13-15 percent EBITDA margin guidance. AkzoNobel will be announcing details of these measures in the second half of the year.
CEO Hans Wijers
“I am not satisfied with our performance in the quarter, despite positive volume and pricing developments. The recent months have been challenging and it does take time for price increases to work through. We remain on track to deliver our medium-term growth ambitions, and we continue to invest in our businesses as shown by our announcements in this quarter.
In addition we are implementing additional performance improvement measures and functional and operational excellence initiatives.”
The Report for the second quarter of 2011 can be read on http://www.akzonobel.com/q2