Akzo Nobel has announced that revenue for the third quarter 2020 was €2,398 million, down 5% from the third quarter of 2019, but up 1% on a constant currency basis. Volumes were up 3%, showing strong demand for Decorative Paints, partly offset by lower volumes of Performance Coatings and unfavourable price/mix of 1%.
“We delivered an excellent performance for the third quarter, with revenue growth in constant currencies, and business return on sales up at 17.7% driven by strong discipline on margins and cost savings. These results were made possible by the continued commitment of all AkzoNobel colleagues around the world, adapting to the challenges presented by COVID-19,” said CEO, Thierry Vanlancker. “Although the macro-economic environment remains uncertain, we’re continuing to build on our solid position as a frontrunner in our industry, committed to serving our customers with more innovative and sustainable solutions. That’s why we’re proud to have received a Platinum rating from EcoVadis for corporate social responsibility and sustainable procurement.”
In a conference call with analysts, Vanlacker said that refinish sales were better than the market but overall automotive and aerospace coatings are feeling the impact of the pandemic on demand stating: “Automotive and specialty coatings continues to be impacted by weaknesses in both automotive and aerospace industries, which we will believe will take up to two years to fully recover. Despite this, demand for vehicle refinishes is returning and we are outperforming the market.”
Responding to a question from an analyst about the headwinds and tailwinds that differing segments are experiencing, Vanlacker explained that refinish was back, “…to its normal glory in our key markets for us, which is North America and Europe, which is a pretty lucrative segment. So that coming back from really dark depth in the middle of the year is actually pretty encouraging.”