AkzoNobel has reported revenue for the second quarter was up 14% to €2.853 billion and 10% higher in constant currencies. The company reported its pricing up 16% companywide, offsetting the increase of raw material and other variable costs. Volumes were 9% lower.
Operating income at €205 million was down from €384 million in the second quarter of last year, which includes €44 million negative impact from Identified Items such as special charges and benefits, compared to €49 million net positive impact from Identified Items last year.
“Our Q2 results were clearly impacted by two months of lockdowns in China and destocking in decorative paint do-it-yourself channels in Europe. Demand from our customers got back on track in June. Despite the significant Q2 headwinds we were able to match the volumes from pre-COVID Q2 2019,” said AkzoNobel CEO, Thierry Vanlancker. “I’m extremely proud of how the organization stays focused and has the agility to push ahead with our Grow & Deliver ambitions of €2 billion EBITDA in 2023 – while mitigating increasing macro-economic and geo-political uncertainty with further cost reduction and margin management initiatives.”
Automotive and Specialty Coatings revenue was €354 million, up 15% compared to €309 million last year and up 10% in constant currencies mainly due to pricing initiatives more than offsetting slightly lower volumes. According to the company vehicle refinish and aerospace showed volume growth. Automotive and Specialty coatings demand was strong in the North America, EMEA and South Asia markets with Latin America and North Asia having medium demand compared to the previous year.
Half-year revenue was 13% higher and 10% up in constant currencies, mainly as a result of strong pricing initiatives. Demand for aerospace and vehicle refinishes increased.
This article courtesy of Russell Thrall III, publisher CollisionWeek. Check out the website at: www.collisionweek.com.