AkzoNobel delivers improved results for 2017; reconfirms financial guidance for 2020

Excerpt: Akzo Nobel N.V. publishes results for the full-year and the fourth quarter 2017

Akzo Nobel N.V. publishes results for the full-year and the fourth quarter 2017

Akzo Nobel N.V. (continuing and discontinued operations):

  • On track to create two focused, high performing businesses
  • Separation of Specialty Chemicals on track for April 2018; Specialty Chemicals business now reported as discontinued operations
  • Revenue, including discontinued operations, up 3% (up 4% excluding currency impact) at €14,575 million
  • EBIT, including discontinued operations, up 2% to €1,525 million
  • Operating income, including discontinued operations, at €1,396 million includes identified items of €129 million, mainly related to the transformation of AkzoNobel, including the separation of Specialty Chemicals
  • Net income attributable to shareholders at €832 million (2016: €970 million)
  • Total dividend per share proposed for 2017 up 52% to €2.50 (2016: €1.65). €4.00 special cash dividend paid in December 2017 as advance proceeds related to the separation of Specialty Chemicals business
  • Net cash inflow from operating activities at €969 million (2016: €1,291 million)
  • 2020 financial guidance reconfirmed2:
  1. Paints and Coatings: 15% return on sales (ROS)3; return on investment (ROI)4 >25%;
  2. Specialty Chemicals 16% ROS; ROI >20%

AkzoNobel Paints and Coatings (reported as continuing operations):

  • Revenue up 2% (up 4% excluding currency impact) and in both Business Areas, mainly due to volume growth and acquisitions, partly offset by unfavorable currency and price/mix
  • Volumes 2% higher; up 7% for Decorative Paints with growth in all regions, down 1% for Performance Coatings due to adverse conditions in the marine, and oil and gas industries
  • EBIT at €905 million (2016: €928 million), resulting from higher raw material costs, partly offset by increased selling prices, continuous improvement and cost control
  • ROS at 9.4% (2016: 9.8%). ROI at 13.9% (2016: 14.4%)
  • Adjusted EPS from continuing operations at €2.56 (2016: €2.38)
  • Three acquisitions to help grow the business
  • Opening of the most advanced and sustainable paints factory: Ashington, UK
  • Dulux voted healthiest brand in the UK