International. AkzoNobel reported its third quarter results, which show positive profitability developments in all three business areas, despite a challenging market environment.
Operating income for the third quarter increased 30% to €436 million (€), reflecting the positive effects of process optimization, cost reduction, reduction of restructuring expenses and favorable currency developments. Revenue of €3.76 billion was up 2% compared to the same period last year, due to favorable currency effects, offset by divestments and slightly lower volumes. Return on sales improved to 11.6%, while return on investment rose to 12.5%.
Operating income from decorative paints improved by 7%, due to the new operating model, lower costs and currency developments. Revenues were flat, with favorable currency effects that were offset by adverse prices/mixes. Volumes increased in Asia, while they fell for Latin America and Europe, which includes, among others, Russia and Turkey.
The utility of high-performance coatings increased 56%. Revenue increased by 5%. Volumes declined in the quarter due to continued declines in capital spending on global oil and gas, and further weakening in some markets, most notably Brazil and China.
