Akzo Nobel Q1 Profit Climbs, Revenues Down; Warns On Market Environment

(RTTNews) - Dutch paints and coatings maker Akzo Nobel NV (AKZOY.PK, AKZOY) reported Tuesday that its first-quarter net income attributable to shareholders went up 50 percent to 240 million euros from last year's 160 million euros.

Adjusted earnings per share were 0.97 euro, compared to last year's 0.76 euro.

Operating income increased 17 percent to 357 million euros and EBIT increased 9 percent to 334 million euros, reflecting continuous improvement initiatives and lower costs, partly offset by adverse currency effects. Profitability improved, with return on sales at 9.7 percent, compared with 8.5 percent last year.

Revenue down 4 percent due to adverse currency effects, price/mix and divestments

Revenue, meanwhile, was down 4 percent to 3.43 billion euros from 3.59 billion euros a year ago, as positive volume development was more than offset by adverse currency effects, price/mix and divestments.

Volumes went up for all Business Areas and were up 2 percent overall.

Looking ahead, the company said the market environment remains uncertain with challenging conditions in several countries and segments. Deflationary pressures and currency headwinds are expected to continue.