BCN-24 Paintmaker AkzoNobel sees Q2 profits peeling

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ZCZC

BCN-24

NETHERLANDS-EARNINGS-PAINTING-CHEMICALS

Paintmaker AkzoNobel sees Q2 profits peeling

THE HAGUE, July 18, 2018 (BSS/AFP) – Leading global paintmaker AkzoNobel
Wednesday posted a sharp drop in second quarter profits, mainly blaming the
fall on currency fluctuations.

The news of a 10 percent cut in net income, down to 271 million euros ($315
million) in the second quarter of 2018 from 301 million euros in the same
period last year, comes after a turbulent time for the Dutch giant.

In March the company announced it was selling its chemicals arm to US-based
investors Carlyle Group and Singapore’s GIC for 10.1 billion euros, seeking
to restore investor confidence in the Dutch giant.

“Disciplined execution on the first phase of our transformation into a
focused paints and coatings company is creating a fit-for-purpose
organisation and delivering cost savings,” said chief executive Thierry
Vanlancker.

Second quarter revenues were however also down 3.0 percent, from 2.5
billion euros in 2017 to 2.4 billion euros in the three months of April, May
and June.

The manufacturer of such household paint brands as Dulux and Trimetal,
AkzoNobel last year decided to divest its chemicals arm as it fended off an
increasingly hostile takeover bid by US-based rival PPG.

After making three offers, PPG eventually dropped its efforts in mid-2017,
which would have valued the Dutch company at 26.9 billion euros.

The sale to Carlyle Group and Singapore’s GIC is due to be completed
towards the end of 2018, with the net proceeds after deductions of about 7.5
billion euros due to be distributed to shareholders.

The Amsterdam-based multinational vowed that “robust pricing initiatives
and cost-saving programs are in place to mitigate the current challenges”.

BSS/AFP/HR/1255