Akzo Nobel Q2 Profit Jumps 61%, On Track To Meet 2015 Goals

(RTTNews) - Paints and coatings maker Akzo Nobel NV (AKZOY.PK, AKZOY) Tuesday said its second-quarter profit increased significantly from the prior year, with profitability in all three business areas despite a challenging market environment. The company said it remains on track to deliver its 2015 targets.

Net income attributable to shareholders jumped 61 percent to 331 million euros from last year's 205 million euros.

Operating income increased 38 percent to 486 million euros, reflecting the positive effects of efficiency programs, lower costs, reduced restructuring expenses, divestment results and favorable currency rates.

Revenue grew 6 percent to 3.95 billion euros from the previous year's 3.71 billion euros, mainly driven by favorable currency effects, offset by divestments and lower volume.

Revenue advanced 6 percent in Decorative Paints, helped by currency. Volumes grew in Asia, while volumes were down for Europe and Latin America.

In Performance Coatings, revenue grew 8 percent across all reporting units, benefiting from favorable currencies and a higher demand for premium products. Volumes declined mainly due to lower capital and maintenance spending in the global oil and gas industry. Russia, Brazil and China remained challenging.

Specialty Chemicals reported revenue growth of 5 percent due to continued favorable currency effects, partly offset by the impact of the divested Paper Chemicals business. Volumes were flat.

During the period, Specialty Chemicals completed the sale of its Paper Chemicals business for 153 million euros. The business was part of Pulp and Performance Chemicals.

Looking ahead, Akzo Nobel said the market trend in North America continues to be positive with Europe not improving. Conditions remain challenging in many other countries, including Russia, Brazil and China.

The company said it remains on track to deliver its 2015 targets.

The stock rose 0.8 percent and was trading at 70.00 euros.