Revenue up 5 percent to €4 billion, driven by pricing actions to offset raw material cost inflation
Weaker economic conditions and continued raw material price inflation impacted results, particularly in Decorative Paints
EBITDA decreased to €507 million (2010: €574 million)
Net income continuing operations €148 million (2010: €217 million)
Adjusted earnings per share €0.91 (2010: €1.19)
Interim dividend of €0.33 per share declared, up 3 percent
Major performance improvement program launched to deliver €500 million EBITDA in 2014
Nobel N.V. (AkzoNobel) today announced revenue growth of 5 percent, driven by pricing actions to offset raw material cost inflation. Market conditions have become more difficult since the second quarter, which has had an impact on results, particularly in Decorative Paints.
the overall top-line growth remained relatively strong, volume development continued to soften. In addition, input costs continued to rise, outpacing selling price increases. Consequently EBITDA decreased 12 percent to €507 million. Further price increases are being implemented and the cost base is being adjusted.
major performance improvement program has been launched and the full €500 million EBITDA will be delivered in 2014.
CEO Hans Wijers
"Although our top-line revenue growth throughout the quarter was relatively strong, we have seen the macroeconomic situation worsen which has impacted our third quarter results. We have also not yet fully offset the unprecedented raw material cost increases; but this quarter illustrates that we are making good progress, as evidenced by the 6 percent overall price increase, led by Specialty Chemicals.
"We do not expect the macroeconomic situation to improve quickly. So, as in 2008, we are taking action and have launched a major performance improvement program to deliver €500 million EBITDA in 2014. This program will ensure that our growth ambitions are delivered at or above the mid-point of our 13-15 percent EBITDA margin guidance. Our strong fundamentals, commitment to deliver and this program give us confidence in the future."
Business area highlights
2011 third quarter report can be read on www.akzonobel.com/q3.