AkzoNobel announced a 36% increase in Q2 operating revenue.
AkzoNobel announced a 36% increase in Q2 operating revenue.
July 25, 2019
AkzoNobel's second quarter 2019 performance • adjusted operating revenue increased by 36%, To € 305million (2018: € 225million)
• ROS (excluding unallocated costs) 2 increased to 13.7% (2018: 12.1%)
• price/sales decreased by 5% and 6% respectively due to value rather than quantity.
• the transformation was on track, saving € 43million in costs
• the acquisition of mapaero was announced on July 18, 2019, further strengthening the aviation coating business
, At the fixed exchange rate, it increased by 1%, of which 5% was positive price/portfolio and 1% was acquisition contribution, but the sales decreased by 6%
• driven by the continuous pricing measures and cost saving plan, the adjusted operating income increased by 36% to 305million euros (in 2018, it was 225million euros, including 20million euros of one-time cost); The operating income of € 308million includes € 3million from identified projects, which is related to the disposal income after asset network optimization (€ 57million) and transformation cost (€ 54million); The operating revenue in 2018 was EUR 192million, including a negative project of EUR 33million
• the ROS growth rate of decorative coatings was 13.5% (2018: 12.2%); Performance coating ROS increased by 13.6% (2018:11.8%)
• adjusted earnings per share from continuing operations increased by 85% to 0.96 euros (2018: 0.52 euros); The total operating EPS is 1.07 euros (2018:1.06 euros)
Thierry fankel, CEO of AkzoNobel, commented: "we are still fully focused on jointly realizing our victory: the 15*20 strategy. Our second quarter results show that we are making progress, with a profit increase of 36%. The return on sales in this quarter was 13.7%, making us one step closer to the target of 15% in 2020."
"the second quarter of 2019 is an important quarter for us. We want to prove that our strategy is working. Despite the adverse factors of the external business environment, the performance in the second quarter has improved due to our ongoing pricing plan and cost saving plan. This is a useful step for the organization and an encouragement for the work we still face in our transformation journey."
"facing the weak market trend, we continue to focus on the implementation of our strategy and invest in strategic growth opportunities, becoming a recognized reference for the paint and coating industry."
on site repair of Rembrandt's night watchman
recently, AkzoNobel cooperated with the National Museum of the country to carry out one of the most innovative projects in the history of Art - on-site repair of Rembrandt's night watchman. The operation night watch combines the old with the new, and will use breakthrough technology to preserve this painting for future generations. AkzoNobel will also contribute our color expertise to this historic project
the position of the new paint series in the French market soared
our Dulux Valentine decorative paint brand in France has launched a new easy care product called color resist. It is popular in the market. Easy care series (also known as EasyClean) has been launched in 26 countries around the world, including Dulux, Marshall and other brands. Facts have proved that the wide launch in France is a great success, and an extensive TV publicity campaign will last until August. The French brand used a black leopard with a unique shape on its packaging, and launched this series of anti color agents in April this year
challenge the largest private real estate development project in the United States
the historic Hudson courtyard development project in New York, which is changing the skyline of the city's landmark, has reached the latest milestone, for which AkzoNobel has also made significant contributions
this is the largest private real estate development project in the history of the United States. The ongoing project recently completed two towers located at 10 and 30 Hudson square. No. 30 Hudson square, which is higher than the Empire State Building, uses the company's high-performance architectural powder coating, impressive glass and steel structures, while No. 10 Hudson square uses AkzoNobel's industrial coating
make powder coatings more sustainable
with the comprehensive development of powder coatings business, AkzoNobel introduced interpon Low-E series products, and AkzoNobel's powder coatings became more sustainable. In the column of coarse texture system launched last year, which shows broad application prospects in gas adsorption separation, chemical catalysis and other fields, interpon 610 adds a series of complete smooth topcoats. The specially designed curing temperature is lower than the current standard of ℃. The new product is polyester without TGIC. The prices above are factory prices including tax, saving energy and helping customers improve efficiency
and Airbus promote innovation in the aerospace industry
AkzoNobel and Airbus jointly developed a new chromium free primer. Aerodur HS 2121 has been certified by Airbus and has been incorporated into the aircraft manufacturer's technical indicators, designed for almost all external aircraft surfaces during the final assembly phase. In addition to the absence of chromate, the new coating 3, tensile testing machine: material products also provide users with many performance, appearance and application advantages
jointly realize 10. Batch experiments: for samples of the same specification, one batch of experiments can be automatically completed at one time; Win win: strategy, and continue to create a suitable organization for companies focusing on paint and coatings, so as to contribute to the realization of the guidance in 2020
in the uncertain macroeconomic environment, the demand trend of each region and sector is different. It is expected that the inflation of raw materials will stabilize in the second half of 2019
AkzoNobel will continue to implement pricing measures and cost saving plans to meet current challenges
in addition, AkzoNobel will continue to implement the transformation, achieve the next cost savings of 200million euros by 2020, and generate one-time costs in 2019 and 2020
AkzoNobel aims to have a leverage ratio of 1% of net debt/EBITDA by the end of 2020 0 times, and promised to retain a strong investment grade credit rating