Shares of Akzo Nobel NV (AKZOY,AKZOY.PK) declined around 3 percent in the morning trade in Amsterdam as the Dutch paint maker issued a cautious forecast after reporting a decline in first-quarter profit from continuing operations as revenues were hurt by weak European demand. However, net income for the quarter increased on narrower loss from discontinued operations.
Chief Financial Officer Keith Nichols said, "The economic environment remains challenging and we do not expect an early improvement in the trends that we see in our businesses. The acceleration of our performance improvement program and the strategic priorities announced in February are the right focus to have in these markets."
In its recently concluded first quarter, Akzo Nobel's net income attributable to shareholders increased 6 percent to 89 million euros from 84 million euros last year. Profit per share rose to 0.37 euros from 0.36 euros a year ago
The latest quarter results included loss from discontinued operations of 7 million euros, narrower than last year's loss of 26 million euros. The divestment of Decorative Paints North America was completed on April 2013 and is reported in discontinued operations.
On a continuing operations basis, net income decreased 13 percent to 96 million euros or 0.40 euros per share. Adjusted earnings per share was 0.51 euros, compared to 0.65 euros in the prior year.
Operating income dropped 8 percent to 217 million euros as weaker end markets and production issues in the Specialty Chemicals value chainimpacted results, the company noted.
Quarterly revenues decreased 7 percent to 3.47 billion euros from 3.71 billion euros last year mainly due to lower volumes on weak demand in European markets and divestments, mainly of Chemicals Pakistan.
Segment-wise, revenue in Decorative Paints declined 5 percent, mainly due to lower volumes in Europe, price/mix and currencies. Volumes were lower in Europe and South East Asia, but higher in Latin America and China.
Revenue in Performance Coatings fell 3 percent from the previous year as the slowdown in Europe impacted all businesses. Revenue in Specialty Chemicals also went down 11 percent due to divestments and lower volumes, mainly in construction related products and the pulp bleaching and plastics industries. According to the company, the cold weather affected seasonal segments such as agriculture and the exit from the merchant fatty acids business in China also contributed to the volume decline.
The company further said the acceleration of its performance improvement program is progressing toward achieving the full EBITDA benefit of 500 million euros a year early, as announced at the strategy update in February 2013.
In Amsterdam, Akzo Nobel shares are currently trading at 45.40 euros, down 1.63 euros or 3.48 percent.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.