AkzoNobel: disappointing first-quarter, spin-off continues

(CercleFinance.com) - On Tuesday AkzoNobel posted disappointing first-quarter results, due to higher raw materials costs and adverse currency factors, although the group said it was making progress towards the separation of its specialty chemicals unit.


The Dutch firm - which is selling its specialty chemicals to Carlyle and GIC for 10 billion euros to focus on paints and coatings - said adjusted operating income fell to 149 million euros in the first three months of the year, from 208 million euros during the exceptionally strong first quarter last year.

Despite a 3% increase in selling prices, first-quarter revenue decreased by 8% to 2.2 billion euros, mainly due to continued adverse market conditions in the marine, and oil and gas industries.

In its press release, Akzo warned that higher raw materials costs and adverse FX factors are expected to continue in 2018.

After these comments, the shares were down 3% at 75.7 euros on Euronext Amsterdam.

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