AkzoNobel reports strong Q2
AkzoNobel today reported a positive second quarter with developments in profitability across all three business areas, despite a challenging market environment.
Second quarter operating income increased 38% to €486 million, reflecting the positive effects of its efficiency programs, lower costs, reduced restructuring expenses, divestment results and favourable currency rates. Revenue of €3,949 million was up 6% compared with the same period last year due to favourable currency rates, offset by divestments and lower volumes in some areas. The divestment of Paper Chemicals was completed in line with the strategy of pruning the portfolio. The triennial review with trustees of the ICI Pension Fund (UK) was completed in July, 2015. According to the company, market trends in North America continued to be positive with Europe not improving. Conditions remained challenging in many countries, including in Russia, Brazil and China. Return on sales improved to 12.3% and return on investments was up at 11.7%.
CEO Ton Büchner said: “We continue to deliver on our aim to improve the performance of our company. This will position us well to make the most of future opportunities and growth. The second quarter continued to show the positive impact of our focus on profitability and leadership in sustainability. The global economy remains challenging and shows a very mixed picture with different dynamics per region and customer segments. We remain on track to deliver our 2015 targets.”