Akzo Nobel Q1 Profit Jumps Even As Adverse Currency Hits Revenue

(RTTNews) - Dutch paint maker Akzo Nobel NV (AKZOY.PK, AKZOY) Thursday reported a significant increase in profit for the first quarter, supported by lower financing expenses, even as revenue slipped due to adverse currency. Volume and price/mix development was positive in all three business areas. Further, the firm said it is on track to deliver its targets for 2015.

Profit attributable to shareholders of the company for the quarter increased to 129 million euros ($178.5 million) from 89 million euros in the previous year, mainly due to lower financing expenses that fell to 37 million euros from 63 million euros.

Revenue from continuing operations slipped to 3.383 billion euros from 3.465 billion euros in the prior year, amid adverse currency effects.

Operating income slipped to 216 million euros from 217 million euros in 2013, reflecting adverse currencies and 15 million euros of higher restructuring costs.

Revenue declined 6 percent in Decorative Paints to 865 million euros, due to adverse currency effect driven by Latin America and Asia as well as the divestment of Building Adhesives.

In Performance Coatings, revenue edged own 1 percent to 1.319 billion euros, due to a 6 percent adverse currency impact.

Specialty Chemicals' revenue slipped 2 percent to 1.222 billion euros, as a result of adverse currency and divestments.

The company said a final dividend for 2013 of 1.12 euros per share is proposed, which would make a total 2013 dividend of 1.45 euros per share, flat with last year.

Akzo Nobel said it is on track to deliver 2015 targets, despite expectations for continued fragile economic environment and volatile currencies in 2014.

The stock closed up 3.7 percent in Amsterdam on Wednesday at 56.86 euros.