April 21, 2011
* Stronger volumes and pricing drive revenue growth of 16 percent to €3.8
billion
* EBITDA* increased 10 percent to €437 million
* Raw material cost increases being mitigated
* Total net income increased to €128 million from €81 million in Q1 2010
* Adjusted EPS** rose 38 percent to €0.72 per share
* Outlook reiterated: aiming for more than 5 percent revenue and EBITDA growth
in 2011 - in line with strategic ambitions
Financial highlights
Q1 2011 in € million
 Q1 '10 Q1 '11 D%
Revenue 3,246 3,762 16
EBITDA 399 437 10
EBITDA margin (in %) 12.3 11.6
Net income 81 128 58
Akzo Nobel N.V. ("AkzoNobel") today reported a 16 percent gain in Q1 revenue
compared with the same period in 2010. Group revenue of €3,762 million (Q1
2010: €3,246 million) reflects a 7 percent increase in volumes and a 4 percent
positive price effect.
Double-digit revenue growth was achieved in all three Business Areas, driven by
the company's continued strength in high growth markets and demand recovery in
mature economies.
Raw material price inflation has been significant. Pricing and cost reduction
actions are on-going to mitigate the impact of this and AkzoNobel remains
confident that it will be able to compensate for these increases.
During the quarter, EBITDA improved by 10 percent to €437 million, although
overall EBITDA margins declined slightly compared with Q1 2010, reflecting the
lag effect of pricing and margin management actions to compensate raw material
price increases. Sequentially, from Q4 2010, the EBITDA margin increased from
10.4 percent to 11.6 percent as mitigating actions took effect. The company has
a seasonal pattern in that revenue and profitability are lowest in the fourth
and first quarters of the year.
CEO Hans Wijers:
"These results demonstrate further progress in working towards our medium-term
strategic goals and in managing the current inflationary headwinds. I am
particularly pleased with the strong volume and pricing behind our 16 percent
revenue growth, which gives me confidence that we have been able to maintain or
improve market share across the portfolio."
"There continue to be considerable differences in the strength of demand across
our geographies and end markets, but we have continued to grow revenue in both
high growth and mature markets. Our revenue growth in high growth markets
continued to be impressive."
"Raw material prices have continued to rise, as we indicated last quarter.
Pricing and cost reduction actions are on-going to mitigate the impact of these
higher prices and we remain confident that we will be able to compensate for
these increases."
"Specialty Chemicals continues to experience strong demand and both revenue and
EBITDA grew strongly. Performance Coatings achieved considerable growth in high
growth markets and benefitted from the acquisitions made last year. The
successful roll-out of our Decorative Paints products to 3,500 Walmart stores in
the US, together with continued strong growth in Asia and Latin America
underpinned the Decorative Paints performance."
Outlook 2011 reiterated
AkzoNobel expects to make further progress on its medium-term strategic
ambitions. The company is aiming for more than 5 percent revenue and EBITDA
growth in 2011.
Highlights
Decorative Paints Q1 '10 Q1 '11 D%
Revenue 1,056 1,196 13
EBITDA 82 90 10
EBITDA margin (in %) 7.8 7.5
Performance Coatings Q1 '10 Q1 '11 D%
Revenue 1,049 1,237 18
EBITDA 143 143 0
EBITDA margin (in %) 13.6 11.6
Specialty Chemicals Q1 '10 Q1 '11 D%
Revenue 1,154 1,351 17
EBITDA 207 241 16
EBITDA margin (in %) 17.9 17.8
Several significant investments were announced in the first quarter of 2011. Two
were made by our Pulp and Paper Chemicals business - one to supply the world's
largest pulp mill in Brazil and, the other to expand our Expancel business in
Sweden - while a new Bermocoll production facility in China will also contribute
to the company's growth ambitions.
AkzoNobel continued to make progress on its strategic sustainability agenda in
the first quarter of 2011. In the area of operational eco-efficiency, the
company is on track to realizing the overall ambition of reducing its footprint
by 30 percent by 2015. The company also made improvements in working towards the
stated ambition to reduce its carbon footprint by 25 percent per ton of product
by 2020.
The Report for the first quarter of 2011 can be read on
www.akzonobel.com/quarterlyresults.
- - -
AkzoNobel is the largest global paints and coatings company and a major producer
of specialty chemicals. We supply industries and consumers worldwide with
innovative products and are passionate about developing sustainable answers for
our customers. Our portfolio includes well known brands such as Dulux, Sikkens,
International and Eka. Headquartered in Amsterdam, the Netherlands, we are a
Global Fortune 500 company and are consistently ranked as one of the leaders in
the area of sustainability. With operations in more than 80 countries, our
55,000 people around the world are committed to excellence and delivering
Tomorrow's Answers Today(TM).
Not for publication - for more information
Corporate  Media  Relations               Corporate  Investor Relations
Tel. +31 20 502 7833Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Tel. +31 20 502 7854
Contact: Tim van der Zanden             Contacts: Huib Wurfbain and Ivar Smits
AkzoNobel Q1 2011 Report:
http://hugin.info/130660/R/1508298/443152.pdf
Pdf file AkzoNobel Q1 press release:
http://hugin.info/130660/R/1508298/443218.pdf
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Source: Akzo Nobel NV via Thomson Reuters ONE
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