The paints and chemicals group knew its sales last quarter light to enter, but struggled again with falling prices and negative currency effects.
Akzo Nobel reported Tuesday a turnover of EUR 3.7 billion for the second quarter . That was 6 percent lower than a year earlier.
Also, net profit fell by 6 percent to 312 million euros, but that was mainly due to one-off windfalls which were added last year. The operating result (EBIT) improved by 9 percent to 491 million euros.
Akzo indicated that market conditions remain uncertain in the near future ” with challenging conditions in different countries and segments. Prices remain under pressure, while the wind nor decreases in the foreign exchange market.
Output prices
Last time cut the blade of the lower prices for Akzo on two sides. Output prices are under pressure due to weak economic growth, but at the same time lower purchasing costs due to the decrease in oil prices. The latter effect is likely, however, the next few months less while continuing reduction in selling prices.
CEO Ton Büchner indicated that conditions recently have improved slightly in Europe. While allowing the brexit and the recent unrest in Turkey for new uncertainty in the region. Akzo maintains its activities in Britain, where it claims to have a strong position. Problems in the UK housing market paint sales in the country may be put under pressure.
Profitability
The group managed to further increase its profitability last quarter. The return on sales (ROS) improved thereby from 11.7 to 13.2 percent. The return on investment (ROI) was nearly 3 percentage points up to 15.1 percent.
Buchner noted the increase in the quantity of products sold (up 1 percent) and higher profitability as the main pluses. Akzo remains according to target it towards further improvements and organic growth
The developments were broadly similar in the three divisions of Akzo:. Sales fell, while the result improved
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