Performance Coatings
Half-year:
- Volumes down 2% due to weak demand in Marine and Protective Coatings. Volumes up excluding Marine and Protective Coatings
- Revenue up 4%, mainly due to the acquired Industrial Coatings business
- EBIT and operating income adversely impacted by ongoing weakness in the marine and oil and gas industries
- ROS at 13.1% (2016: 14.3%) and ROI at 27.2% (2016: 31.0%), affected by Marine and Protective Coatings and the integration of the acquired Industrial Coatings business
Q2:
- Volumes up for Industrial and Powder Coatings, more than offset by lower volumes in Marine and Protective Coatings
- Revenue up 2%, mainly due to the acquired Industrial Coatings business
- EBIT and operating income adversely impacted by ongoing weakness in the marine and oil and gas industries, as well as increased costs of raw materials
Performance Coatings expands US research and development facilities in Houston, Texas
AkzoNobel completed an expansion of its US research and development facilities in Houston, Texas. Carried out in phases over a period of three years, the investment in the site - which employs around 40 scientists - will support several of the company’s Performance Coatings businesses.
Half-year:
Revenue was up 4%, driven by the acquired Industrial Coatings business. Positive volume developments for Industrial and Powder Coatings were more than offset by continued weak demand in Marine and Protective Coatings. Excluding Marine and Protective Coatings, volumes were higher.
EBIT was down due to ongoing weakness in the marine and oil and gas industries. Excluding Marine and Protective Coatings, EBIT was up. ROS and ROI were affected by Marine and Protective Coatings and the acquired Industrial Coatings business.
Q2:
Revenue was up 2%, driven by the acquired Industrial Coatings business, as well as positive volume development in Industrial and Powder Coatings. Adverse conditions persisted in the marine and oil and gas industries, which resulted in lower volumes for our marine and protective coatings.
EBIT was down 9%. Positive revenue developments across a number of segments were more than offset by ongoing weakness in the marine and oil and gas industries, as well as increased costs of raw materials. Appropriate measures are being taken to address the higher raw material prices.
|
Second quarter |
|
January-June |
||||||
|
2016 |
2017 |
∆% |
in € millions |
2016 |
2017 |
∆% |
||
|
||||||||
|
392 |
347 |
(11) |
Marine and Protective Coatings |
752 |
687 |
(9) |
||
|
385 |
391 |
2 |
Automotive and Specialty Coatings |
758 |
789 |
4 |
||
|
705 |
777 |
10 |
Industrial and Powder Coatings |
1,370 |
1,519 |
11 |
||
|
(9) |
(11) |
|
Other/intragroup eliminations |
(19) |
(20) |
|
||
|
1,473 |
1,504 |
2 |
Total |
2,861 |
2,975 |
4 |
||
|
|
|
|
|
|
|
|
||
|
222 |
202 |
(9) |
EBIT |
408 |
389 |
(5) |
||
|
222 |
202 |
(9) |
Operating income |
408 |
389 |
(5) |
||
|
15.1 |
13.4 |
|
ROS% * |
14.3 |
13.1 |
|
||
|
|
|
|
|
|
|
|
||
|
|
|
|
Average invested capital |
2,612 |
2,725 |
|
||
|
|
|
|
Moving average ROI (in %) * |
31.0 |
27.2 |
|
||
|
|
|
|
|
|
|
|
||
|
40 |
30 |
|
Capital expenditures |
71 |
55 |
|
||
|
|
|
|
Number of employees |
19,300 |
19,900 |
|
||
Revenue development half-year 2017
Revenue development Q2 2017
Marine and Protective Coatings
Revenue was down 9% due to ongoing weakness in the marine and oil and gas industries.
In Q2, volumes in Marine Coatings continued to be impacted by the slowdown of new build activity and downstream oil and gas projects. Protective Coatings volumes decreased, mainly due to the conclusion of existing oil and gas projects. Volumes grew in a number of other segments, including maintenance and repair. Overall, revenue was down 11%.
Automotive and Specialty Coatings
Revenue was up 4%, due to growth in both Automotive and Specialty Coatings, particularly in North America and continental Europe. Demand trends differed per segment and region.
In Q2, revenue was up 2%, mainly due to positive price/mix effects. Volume grew for Automotive Exterior across all regions. Demand for Aerospace remained robust.
Industrial and Powder Coatings
Revenue was up 11%, driven by higher volumes for all segments and the acquired Industrial Coatings business. Excluding the acquisition, revenue was up 3%. Demand trends were positive for Asia, while differed per segment in other regions.
In Q2, volumes were up, mainly due to growth in Asia and Latin America. Powder Coatings continued to show strong growth momentum. Revenue was up 10% including the acquired Industrial Coatings business, and up 3% excluding this acquisition.
Integration of the acquired Industrial Coatings business
We are integrating the respective parts of the acquired 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.