Dutch coatings manufacturer cites selected price hikes and cost savings for strong performance
AkzoNobel, the Dutch paints and performance coatings multinational, has reported a 23% rise in Q3 profit, lifting it to €300m, up from €243m in the same 2018 period.
The Amsterdam-based company credited its Q3 performance to selected price hikes and cost savings. It said it is on target to achieve a 15% return on sales in 2020, up from 13.8% this year. An increasing ROS means a company grows more efficiently.
“We are delivering toward our 15% by 2020 strategy,” said AkzoNobel CEO Thierry Vanlancker.
He added the Q3 profit “was a year-on-year increase for the fifth quarter in a row. Our profit improvement of 23% in the third quarter was strong, even though we had to deal with softer end market demand.”
Vanlancker also announced his company will buy back €500m of its own shares, an investor-pleasing move bound to boost the value of their shares in the company.
AkzoNobel is active in several markets, including boatbuilding. It recently unveiled Awlgrip HDT (High Definition Technology), a new single-stage repairable topcoat.
Vanlancker says the global market is relatively “subdued” except in aerospace and powder coatings. He said that “continued pricing initiatives and cost-saving programs are in place to address the current challenges.” In recent years, AkzoNobel implemented cost savings of €19m.