Our results at a glance
Highlights Q3 2019:
- Adjusted operating income up 23% at €300 million (2018: €243 million)
- ROS, excluding unallocated costs, increased to 13.8% (2018: 12.3%)
- Transformation on track and delivered €19 million cost savings
- Adjusted EPS from continuing operations up 62% at €0.97 (2018: €0.60)
- New share buyback announced, €500 million to be completed in the first half of 2020
Q3 2019:
- Revenue up 3% and 2% higher in constant currencies, with positive price/mix of 4% and acquisitions contributing 1%, offset by 4% lower volumes
- Adjusted operating income up 23% at €300 million (2018: €243 million) driven by ongoing pricing initiatives and cost-saving programs; ROS increased to 12.5% (2018: 10.4%)
- Operating income at €247 million includes €53 million negative impact from identified items, related to transformation costs and non-cash impairments; 2018 operating income at €237 million included €6 million negative identified items
- Decorative Paints ROS up at 13.8% (2018: 12.1%); Performance Coatings ROS up at 13.7% (2018: 12.2%)
- Net income from total operations at €162 million, including €nil million from discontinued operations (2018: €301 million, including €152 million from discontinued operations)
- Adjusted EPS from continuing operations up 62% at €0.97 (2018: €0.60); EPS from total operations at €0.79 (2018: €1.18)
- €2.2 billion of the €2.5 billion share buyback program completed
- Interim dividend of €0.41 per share
AkzoNobel around the world
Revenue by destination
Outlook:
We are delivering towards our Winning together: 15 by 20 strategy and continue creating a fit-for-purpose organization for a focused paints and coatings company, contributing to the achievement of our 2020 guidance. Demand trends differ per region and segment in an uncertain macro-economic environment. Raw material inflation is expected to have a favorable effect on the remainder of 2019. Continued pricing initiatives and cost-saving programs are in place to address the current challenges. We continue executing our transformation to deliver the previously announced €200 million cost savings by 2020, incurring one-off costs in 2019 and 2020. We target a leverage ratio of between 1.0-2.0 times net debt/EBITDA by the end of 2020 and commit to retain a strong investment grade credit rating.
* Excluding unallocated corporate center costs and invested capital; assumes no significant market disruption
|
Third quarter |
|
January-September |
||||||
|---|---|---|---|---|---|---|---|---|
|
2018 |
2019 |
∆% |
in € millions |
2018 |
2019 |
∆% |
||
|
||||||||
|
2,326 |
2,398 |
3% |
Revenue |
6,948 |
7,034 |
1% |
||
|
303 |
387 |
28% |
Adjusted EBITDA 1 |
797 |
1,029 |
29% |
||
|
297 |
334 |
12% |
EBITDA 1 |
717 |
929 |
30% |
||
|
243 |
300 |
23% |
Adjusted operating income 1 |
617 |
768 |
24% |
||
|
237 |
247 |
4% |
Operating income 1 |
537 |
668 |
24% |
||
|
10.4 |
12.5 |
|
ROS% 1 |
8.9 |
10.9 |
|
||
|
10.2 |
10.3 |
|
OPI margin 1 |
7.7 |
9.5 |
|
||
|
|
|
|
|
|
|
|
||
|
|
|
|
Average invested capital 1 |
6,322 |
6,823 |
|
||
|
|
|
|
ROI% 1 |
12.6 |
13.9 |
|
||
|
|
|
|
|
|
|
|
||
|
12.3 |
13.8 |
|
ROS% excl. unallocated costs 1 |
11.1 |
12.3 |
|
||
|
|
|
|
ROI% excl. unallocated costs 1 |
16.5 |
16.8 |
|
||
|
|
|
|
|
|
|
|
||
|
41 |
52 |
27% |
Capital expenditures |
120 |
135 |
13% |
||
|
|
|
|
Net debt 1 |
2,700 |
537 |
|
||
|
|
|
|
Number of employees |
34,300 |
34,300 |
–% |
||
|
|
|
|
|
|
|
|
||
|
284 |
312 |
10% |
Net cash from operating activities - continuing 1 |
(157) |
(260) |
(65%) |
||
|
|
|
|
|
|
|
|
||
|
149 |
162 |
9% |
Net income from continuing operations |
375 |
442 |
18% |
||
|
152 |
– |
|
Net income from discontinued operations |
450 |
16 |
|
||
|
301 |
162 |
(46%) |
Net income attributable to shareholders |
825 |
458 |
(44%) |
||
|
0.60 |
0.97 |
62% |
Adjusted earnings per share from continuing operations (in €) |
1.48 |
2.35 |
59% |
||
|
1.18 |
0.79 |
(33%) |
Earnings per share from total operations (in €) |
3.24 |
2.10 |
(35%) |
||