Akzo Nobel Reiterates 2013 Outlook

(RTTNews) - Dutch paint maker Akzo Nobel NV (AKZOY, AKZOY.PK) on Wednesday reiterated its earnings outlook for fiscal 2013. The company noted that trading into the fourth quarter of 2013 continued to be in line with previous trends, and the economic environment continued to be challenging.

Accordingly, Akzo Nobel continues to expect that fiscal 2013 operating income before incidental items is unlikely to exceed 908 million euros reported it in 2012. The company said its performance improvement program is on track to achieve its 2013 targets.

The operating income outlook reflects higher restructuring charges and continued weak markets. The company expects restructuring charges to exceed 300 million euros in 2013, largely in line with its prior indications for the year.

Further, Akzo Nobel said that sale of the Building Adhesives business that was successfully completed in the fourth quarter will result in an incidental profit of around 200 million euros. However, this is expected to be largely offset by additional incidental charges, including a noncash write-down in the Specialty Chemicals segment, among others.

Akzo Nobel will announce its financial results for the fourth quarter on February 6, 2014, and hold a Capital Markets Day in London on March 11, 2014.

Looking ahead to fiscal 2014, Akzo Nobel said it sees continued opportunities to invest in additional efficiency gains and now anticipate charging at least 250 million euros in the year. The company also said it remains confident in achieving its targets for 2015.

In late October 2013, Akzo Nobel reported a turnaround to profit in the third quarter, compared to loss in the year-ago period that included a hefty impairment charge.

The company's net income attributable to shareholders for the third quarter was 155 million euros, compared to the prior year's loss of 2.37 billion euros that included 2.1 billion euros of impairment charge. Revenues declined 5 percent to 3.78 billion euros from 3.97 billion euros in the same period last year, reflecting adverse currency effects and divestments.

In Wednesday's trading on the Amsterdam stock exchange, Akzo Nobel's shares are trading at 54.45 euros, down 1.45 euros or 2.61 percent on a volume of 773,544 shares.