AkzoNobel trading update

Posted: 17 February 2015

AkzoNobel has released its full-year and Q4 2014 trading updates. Highlights included:

Full-year results:
• Revenue down 2 percent: Volume up 1 percent in all Business Areas, more than offset by currency effects and divestments
• Operating income excluding incidental items was €1,072 million (2013: €897 million), up 20 percent
• Operating income of €987 million up 3 percent, due to higher operating results and lower
• restructuring charges, offset by adverse incidental items
• ROS was 6.9 percent (2013: 6.6 percent); excluding incidentals ROS was 7.5 percent (2013: 6.1 percent)
• Adjusted EPS at €2.81 (2013: €2.62)
• Net income attributable to shareholders €546 million (2013: €724 million*)
• Total dividend for 2014 proposed at €1.45 (2013: €1.45)
• Net cash inflow from operating activities €811 million (2013: €716 million)

Q4 results:
• Revenue up 1 percent, with 2 percent favorable currency effects offset by 1 percent lower volumes
• Operating income excluding incidentals was €169 million (2013: €55 million) up 207 percent due to improved operational performance and lower restructuring charges
• Adjusted EPS at €0.33 (2013: (€0.01))

Outlook
On track to deliver 2015 targets

CEO Ton Büchner says, “For the full year we achieved further improvements in our operational performance, visible in our return on sales and return on investment levels. The introduction of several commercial excellence initiatives will help us drive organic growth going forward.

“2014 was challenging, evidenced by negative currency effects, a continued lack of growth in Europe and a slowdown in some of the Asian and Latin American economies. During the year, we continued to build a solid foundation and remain on track to deliver on our 2015 targets.

“The year was also notable for several key achievements. A major highlight for us in 2014 was the launch of our Human Cities initiative and our partnership with 100 Resilient Cities. We introduced the first carbon credit methodology for the international shipping industry, which allows ships to generate income in the form of carbon credits by reducing CO2 emissions. We were also especially pleased to be ranked first on the Dow Jones Sustainability Index (in the Materials industry group) for the third year in a row.”