Our results at a glance
Progressing strategy to accelerate growth and value creation
- Capacity expansions in Brazil, Mexico, Sweden and Thailand
- Two acquisitions announced to strengthen Performance Coatings business
- Decorative Paint product launches including Levis in China and EasyCare in Brazil
- Specialty Chemicals separation process on track for completion by April 2018
- Shareholder engagement plans announced including EGM on September 8, 2017
- New set-up for Executive Committee
Half-year:
- Volumes up 2%, driven by Decorative Paints and Specialty Chemicals
- Revenue up in all Business Areas and 4% overall, mainly due to volume growth and acquisitions
- EBIT up 1% at €837 million (2016: €825 million), mainly due to volume growth and continuous improvement, partly offset by higher raw material costs and continued weak demand in Marine and Protective Coatings
- Operating income at €817 million (2016: €848 million), impacted by identified items
- ROS at 11.2% (2016: 11.6%); ROI at 14.8% (2016: 15.1%)
AkzoNobel around the world
Revenue by destination
Q2:
- Volumes increased for Decorative Paints and Specialty Chemicals, and flat overall
- Revenue up 2% driven by Performance Coatings and Specialty Chemicals
- EBIT at €461 million (2016: €491 million), impacted by higher raw material costs, continued weak demand in Marine and Protective Coatings and a planned maintenance turnaround in Industrial Chemicals
- Operating income at €441 million (2016: €491 million), impacted by identified items
- ROS at 12.2% (2016: 13.2%); ROI at 14.8% (2016: 15.1%)
- Net income attributable to shareholders at €301 million (2016: €312 million)
- Adjusted EPS up 2% at €1.35 (2016: €1.32)
- Net cash inflow from operating activities at €312 million (2016: €453 million)
- Share repurchase program completed. A total of 2.38 million common shares repurchased in the period from January 2, 2017 up to and including April 21, 2017 for a total consideration of €160 million
Outlook:
We continue to anticipate positive developments for EMEA (excluding the UK), North America and Asia, improving during the year, while Latin America is expected to stabilize. Market trends will remain challenging for the marine and oil and gas industries.
We have improved our ability to respond to developments in our markets and continue taking appropriate measures, including structure to drive operational excellence and additional cost control, to deal with higher raw material prices in an inflationary environment.
We continue to expect EBIT for 2017 to be around €100 million higher than 2016, as a result of growth momentum and continuous improvement, assuming no further material changes in market and economic dynamics,
including foreign currencies.
|
Second quarter |
|
January-June |
||||||
|
2016 |
2017 |
∆% |
in € millions |
2016 |
2017 |
∆% |
||
|
||||||||
|
3,711 |
3,785 |
2 |
Revenue |
7,141 |
7,446 |
4 |
||
|
491 |
461 |
(6) |
EBIT |
825 |
837 |
1 |
||
|
491 |
441 |
(10) |
Operating income |
848 |
817 |
(4) |
||
|
13.2 |
12.2 |
|
ROS% * |
11.6 |
11.2 |
|
||
|
13.2 |
11.7 |
|
OPI margin% |
11.9 |
11.0 |
|
||
|
|
|
|
|
|
|
|
||
|
|
|
|
Average invested capital |
10,155 |
10,212 |
|
||
|
|
|
|
Moving average ROI (in %) * |
15.1 |
14.8 |
|
||
|
|
|
|
|
|
|
|
||
|
151 |
149 |
|
Capital expenditures |
275 |
269 |
|
||
|
453 |
312 |
|
Net cash from operating activities |
117 |
25 |
|
||
|
|
|
|
Net debt |
1,580 |
1,910 |
|
||
|
|
|
|
|
|
|
|
||
|
312 |
302 |
(3) |
Net income from continuing operations |
553 |
542 |
(2) |
||
|
– |
(1) |
|
Net income from discontinued operations |
(1) |
(1) |
|
||
|
312 |
301 |
(4) |
Net income attributable to shareholders |
552 |
541 |
(2) |
||
|
1.24 |
1.20 |
|
Earnings per share from total operations (in €) |
2.21 |
2.15 |
|
||
|
1.32 |
1.35 |
2 |
Adjusted earnings per share (in €) |
2.30 |
2.40 |
4 |
||
|
|
|
|
Number of employees |
45,700 |
46,300 |
|
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