Performance Coatings
- ROS up at 12.2% (2017: 10.3%) and higher selling prices contributing to price/mix of 7%
- Powder Coatings continued the positive trend with growth of 9% in constant currencies
Q3 2018:
- Revenue 3% lower, and flat in constant currencies, with 7% positive price/mix driven by higher selling prices
- Adjusted operating income was up €23 million at €170 million (2017: €147 million) mainly driven by pricing initiatives , positive impact from asset network optimization and cost control more than offsetting adverse currencies, higher raw material costs and lower volumes
- ROS at 12.2% (2017: 10.3%); ROI at 20.2% (2017: 24.8%)
Embraer goes wild with AkzoNobel’s aerospace coatings
Animal attraction has drawn AkzoNobel and Embraer together to develop stunning livery for three of the aircraft maker’s latest line of E2 commercial jets. The eye-catching trio of designs – depicting an eagle, a tiger and a shark – were created using aerospace coatings from the company’s Alumigrip and Aerodur ranges. The artwork was applied at Embraer’s facility in São José dos Campos, Brazil, which houses a dedicated AkzoNobel color mixture center.
Q3 2018:
Revenue was 3% lower, and flat in constant currencies. Pricing initiatives continued to gain traction, with further increases planned. Volumes were lower, mainly for Marine and Protective Coatings.
Adjusted operating income increased as results of the pricing initiatives, the positive impact of asset network optimization and cost control more than offset adverse currencies, higher raw material costs and lower volumes.
Operating income was adversely impacted by €6 million identified items relating to the transformation of the organization.
Third quarter |
|
January-September |
||||||||||
2017 1 |
2018 |
∆% |
∆% CC 2 |
in € millions |
2017 1 |
2018 |
∆% |
∆% CC 2 |
||||
|
||||||||||||
286 |
302 |
6% |
9% |
Powder Coatings |
877 |
911 |
4% |
9% |
||||
347 |
318 |
(8%) |
(7%) |
Marine and Protective Coatings |
1,104 |
958 |
(13%) |
(8%) |
||||
351 |
346 |
(1%) |
1% |
Automotive and Specialty Coatings |
1,073 |
1,051 |
(2%) |
3% |
||||
457 |
438 |
(4%) |
(1%) |
Industrial Coatings |
1,386 |
1,317 |
(5%) |
1% |
||||
(13) |
(16) |
|
|
Other/intragroup eliminations |
(37) |
(53) |
|
|
||||
1,428 |
1,388 |
(3%) |
0% |
Total |
4,403 |
4,184 |
(5%) |
0% |
||||
Revenue development Q3 2018
Third quarter |
|
January-September |
||||
2017 |
2018 |
∆% |
in € millions |
2017 |
2018 |
∆% |
147 |
170 |
16% |
Adjusted operating income |
536 |
476 |
(11%) |
147 |
164 |
12% |
Operating income |
536 |
447 |
(17%) |
10.3 |
12.2 |
|
ROS% |
12.2 |
11.4 |
|
|
|
|
|
|
|
|
|
|
|
Average invested capital |
2,781 |
3,021 |
|
|
|
|
ROI% |
24.8 |
20.2 |
|
Powder Coatings
Revenue in Q3 was 6% higher; up 9% in constant currencies and up in all regions. Growth was supported by new applications and selling price increases.
The acquisition of the V. Powdertech business in Thailand continued to fuel growth and strengthen the Powder Coatings business in South East Asia.
Marine and Protective Coatings
Revenue in Q3 was 8% lower, and 7% lower in constant currencies, with a continued focus on selling price increases and cost savings.
Volumes in Marine Coatings continued to be affected by the slowdown of new build activity, despite some recovery in other segments. Protective Coatings volumes also decreased due to fewer oil and gas projects. We continue to implement measures focused on restructuring and right-sizing.
Automotive and Specialty Coatings
Revenue in Q3 was 1% lower, although up 1% in constant currencies, with positive price/mix more than offsetting lower volumes.
Industrial Coatings
Revenue in Q3 was 4% lower, and 1% lower in constant currencies, with a continued focus on pricing initiatives. Price increases were offset by lower volumes.