AkzoNobel Q1 Profit Up 5%; To Sell Specialty Chemicals For EUR 10.1 Bln

(RTTNews) - Dutch paints and chemicals maker AkzoNobel N.V. (AKZA.AS; AKZOY) reported that its first-quarter net income from total operations rose 5 percent to 253 million euros from 240 million euros in the year-ago period.

However, adjusted earnings per share from continuing operations were 0.35 euros, compared to 0.50 euros a year ago.

Revenue for the quarter decreased 8 percent to 2.18 billion euros from 2.38 billion euros in the prior year, mainly due to adverse foreign currencies. Excluding currency impact, revenues were down 1 percent from last year.

The company noted that volumes declined 3 percent, while selling prices rose 3 percent overall and for all businesses.

AkzoNobel said it has completed the dual-track process for the separation of Specialty Chemicals. The company has also agreed to sell Specialty Chemicals to Carlyle Group and GIC for 10.1 billion euros.

Looking ahead, AkzoNobel noted that higher raw material costs and adverse effects from foreign currencies are projected to continue in 2018, especially during the start of the year.

The company anticipates ongoing positive developments for Decorative Paints in all regions, particularly Asia. Trends for Performance Coatings are expected to be positive for most segments and regions, while still challenging for Marine and Protective Coatings.