Dutch paints and chemicals maker AkzoNobel today reported that net income from total operations for the second quarter slid to 271 million euros from 301 million euros last year. The results include 164 million euros in discontinued operations, compared to last year's 134 million euros. Revenue for the second quarter grew 3 percent to 2.533 billion euros, while it was up 2 percent in constant currencies, with positive price/mix partly offset by lower volumes.
"Disciplined execution on the first phase of our transformation into a focused Paints and Coatings company is creating a fit-for-purpose organization and delivering cost savings. Revenue in constant currencies increased in all Performance Coatings segments except Marine and Protective Coatings. Decorative Paints delivered a particularly strong performance with pricing initiatives and cost savings compensating for higher raw material costs,” Thierry Vanlancker, CEO, AkzoNobel said.
"We continued investing in our market leading positions, including the acquisition of the Fabryo decorative paints business in Romania and the opening of a new powder coatings plant in Changzhou, China."
The company is delivering towards its "Winning together: 15 by 20" strategy by creating a fit-for-purpose organization for a focused Paints and Coatings company, contributing to the achievement of our 2020 guidance. “For the remainder of 2018, we expect positive developments for Decorative Paints and Performance Coatings, excluding Marine and Protective Coatings, where market conditions are still challenging. Demand trends differ per region and segment. Raw material inflation is projected to continue for the remainder of 2018, although at a slower rate than during the start of the year. Robust pricing initiatives and cost-saving programs are in place to mitigate the current challenges,” he added.