Specialty Chemicals (reported as discontinued operations)
Q2 2018:
- Revenue up 1%, and up 7% in constant currencies, due to positive price/mix
- Adjusted operating income up 5% at €175 million (2017: €166 million); strong pricing and productivity improvements were partly offset by adverse currencies and one-off environmental and restructuring costs
- ROS at 13.8% (2017: 13.2%): ROI at 16.8% (2017: 15.3%)
Half-year 2018:
- Revenue down 1%, although up 5% in constant currencies, mainly due to positive price/mix
- Adjusted operating income at €325 million (2017: €332 million) due to adverse currencies, restructuring costs related to manufacturing network optimization projects and other one-off costs, not fully offset by strong price/mix and productivity improvements
- ROS at 12.9% (2017: 13.0%)
Investing in sustainable innovation to better serve our customers
In June, AkzoNobel Specialty Chemicals broke ground in Stenungsund, Sweden for a demonstration plant to showcase a revolutionary and more sustainable technology platform for producing ethylene amines and derivatives from ethylene oxide. The flexibility of the technology will allow for a selective production of a wide range of end products, enabling the company to expand its amines product offering to customers. The company has already started to explore options for a world-scale manufacturing facility.
Q2 2018:
Revenue was up 1%, and 7% higher in constant currencies, driven by positive price/mix. All business units benefited from higher selling prices, as raw material price increases are being passed through. Industrial Chemicals benefited from strong caustic market prices. Volumes were flat overall with growth in some segments offset by lower volumes in Surface Chemistry.
Adjusted operating income was up 5%, mainly due to strong pricing and productivity improvements, partly offset by adverse currencies and one-off environmental and restructuring costs.
Operating income in Q2 2017 was positively impacted by identified items of €18 million.
Half-year 2018:
Revenue was 1% lower, although up 5% in constant currencies, mainly due to positive price/mix. All business units benefitted from price increases, as raw material price increases are being passed through. Industrial Chemicals benefited from strong caustic market prices.
Adjusted operating income was lower, mainly due to the impact of restructuring costs related to manufacturing network optimization projects, one-off costs and adverse currencies, partly offset by strong price/mix and productivity improvements.
Second quarter |
|
January-June |
||||||||
2017 |
2018 |
∆% |
∆% CC * |
in € millions |
2017 |
2018 |
∆% |
∆% CC * |
||
|
||||||||||
469 |
498 |
6 |
12 |
Functional Chemicals |
942 |
957 |
2 |
9 |
||
302 |
334 |
11 |
11 |
Industrial Chemicals |
619 |
685 |
11 |
11 |
||
282 |
253 |
(10) |
(3) |
Surface Chemistry |
566 |
503 |
(11) |
(3) |
||
230 |
213 |
(7) |
1 |
Pulp and |
470 |
430 |
(9) |
– |
||
(24) |
(28) |
|
|
Other/intragroup eliminations |
(49) |
(53) |
|
|
||
1,259 |
1,270 |
1 |
7 |
Total |
2,548 |
2,522 |
(1) |
5 |
||
Revenue development Q2 2018
Revenue development half-year 2018
Second quarter |
|
January-June |
||||||||
2017 1 |
2018 |
∆% |
in € millions |
2017 1 |
2018 |
∆% |
||||
|
||||||||||
166 |
175 |
5 |
Adjusted operating income 2 |
332 |
325 |
(2) |
||||
184 |
175 |
(5) |
Operating income 2 |
350 |
325 |
(7) |
||||
13.2 |
13.8 |
|
ROS% |
13.0 |
12.9 |
|
||||
|
|
|
|
|
|
|
||||
|
|
|
Average invested capital |
3,674 |
3,579 |
|
||||
|
|
|
ROI% |
15.3 |
16.8 |
|
||||
Functional Chemicals
Revenue in Q2 was up 12% in constant currencies driven by volume growth and positive price/mix effects. Volumes were up 4%.
Revenue in the first half-year was 2% higher and up 9% in constant currencies. Volumes were 2% higher.
Industrial Chemicals
Revenue in Q2 was up 11%, due to strong positive price/mix effects, driven by the tight caustic soda market.
Revenue in the first half-year was 11% higher, due to strong price/mix driven by the tight caustic soda market. Volumes were flat due to some smaller supply chain disruptions in the chlor-alkali value chain.
Surface Chemistry
Revenue in Q2 was 3% lower in constant currencies due to lower volumes, partly offset by positive price/mix effects. Lower volumes in some segments, including Agro and Cleaning, were only partly offset by higher volumes in the Oilfield segments.
Revenue in the first half-year was 11% lower and 3% lower in constant currencies, mainly due to lower volumes partly offset by strong price/mix.
Pulp and Performance Chemicals
Revenue in Q2 was up 1% in constant currencies. Volumes were 1% higher. The negative impact of the truck drivers strike in Brazil was offset by continued strong demand for Performance Products.
Revenue in the first half-year was 9% lower, while flat in constant currencies. Volumes were up 3% due to continued strong demand for Performance Products and bleaching chemicals in the Americas. Revenue was impacted by the phasing out of the manufacturing agreements of the divested Paper Chemicals business.