AkzoNobel provides update earnings foryear

AkzoNobel provides update on earnings for the year

5:04 PM, 28th June 2011
AkzoNobel provides update on earnings for the year
Hans Wijers, CEO, AkzoNobel.

AMSTERDAM, THE NETHERLANDS: As part of its ongoing communications with its key stakeholders, Akzo Nobel N V confirmed that revenue development year-to-date has met the company’s expectations. But it said that results for the second quarter will be adversely impacted by ongoing challenging trading conditions and one-off factors.

Recent performance has continued to be impacted by further raw material price inflation in Q2 and as a result, sequential second quarter contribution margins are expected to be flat compared with Q1. Year-on-year raw material prices are estimated to be around 20 per cent higher.

In addition, continued softness of demand in mature markets and prolonged maintenance stops within specialty chemicals will also impact results in the second quarter. These factors lead to an expected second quarter EBITDA of around € 550 million.

AkzoNobel expects full-year 2011 EBITDA to be at least in line with the prior year, assuming no further deterioration in economic conditions. “We are on track in terms of our medium-term growth ambitions. Our revenues for the first half will illustrate this as they are expected to be ahead of full-year guidance, driven by positive price and volume development,” said Hans Wijers, CEO, AkzoNobel.

“Ongoing actions to mitigate raw material price inflation, company-wide cost containment actions, our continuing successful progress in turning around the performance of US decorative paints and continued encouraging growth in high growth markets, will all help mitigate the weaker-than-expected market conditions.”

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