Performance Coatings
- Revenue up 6%, mainly due to positive volume development across a number of segments and the acquisition of BASF’s Industrial Coatings business
- Volume grew in Industrial and Powder Coatings and Automotive and Specialty Coatings, offsetting continued weak demand in Marine and Protective Coatings
- EBIT up 1%, mainly due to positive volume and margin development in several segments and regions, offset by ongoing weakness in marine and oil and gas industries and integration costs
- ROS at 12.7% (2016: 13.4%) and ROI at 28.6% (2016: 30.4%), affected by Marine and Protective Coatings
More than 100 of the coatings industry’s leading scientists will be brought together in a new €12.6 million research and innovation hub for AkzoNobel in Felling, UK.
Revenue was up 6%, driven by positive volume development in Industrial and Powder Coatings, as well as Automotive and Specialty Coatings, and the acquired BASF Industrial Coatings business. Adverse conditions persisted in the marine and oil and gas industries, which resulted in lower volumes for our Marine and Protective businesses.
EBIT was up 1%, mainly due to positive volume and margin development in several segments and regions, most notably in Automotive and Specialty Coatings and North America. These gains were offset by ongoing weakness in the marine and oil and gas industries, as well as costs associated with the integration of the acquired BASF Industrial Coatings business.
First quarter |
|
|
|
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in € millions |
2016 |
2017 |
∆% |
||
|
|||||
Marine and Protective Coatings |
360 |
340 |
(6) |
||
Automotive and Specialty Coatings |
373 |
398 |
7 |
||
Industrial and Powder Coatings |
665 |
742 |
12 |
||
Other/intragroup eliminations |
(10) |
(9) |
|
||
Total |
1,388 |
1,471 |
6 |
||
|
|
|
|
||
EBIT |
186 |
187 |
1 |
||
Operating income |
186 |
187 |
1 |
||
ROS% * |
13.4 |
12.7 |
|
||
|
|
|
|
||
Average invested capital |
2,659 |
2,659 |
|
||
Moving average ROI (in %) * |
30.4 |
28.6 |
|
||
|
|
|
|
||
Capital expenditures |
31 |
25 |
|
||
Number of employees |
19,300 |
19,800 |
|
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Revenue development Q1 2017
Marine and Protective Coatings
Volumes in Marine Coatings continued to be impacted by the slowdown of new build activity. Dry docking activities showed early signs of recovery in North Europe and Asia. Protective Coatings volumes decreased, mainly due to the conclusion of existing oil and gas projects. Overall, revenue was down 6%.
Automotive and Specialty Coatings
Volumes were up due to improved demand in Automotive and Consumer Electronics in Asia. Automotive won significant new business in China. Demand increased for Aerospace in North America and for Automotive in EMEA. Revenue was up 7%.
Industrial and Powder Coatings
Volumes were up, mainly due to growth in Europe and market share gains in Asia, in particular China. Powder Coatings continued to show strong growth momentum. Revenue was up 12%, including the acquisiton of BASF’s Industrial Coatings business, and up 4% excluding this acquisition.
Integration of the acquired BASF Industrial Coatings business
We are integrating the respective parts of the acquired BASF Industrial Coatings business into our Performance Coatings business units. The acquired revenues impacted multiple reporting segments, the largest impact is visible in Industrial and Powder Coatings.