Dutch paints and coatings manufacturer reports mixed first-half results
Dutch paint and coatings manufacturer AkzoNobel has posted strong first-half results, including a €280m net profit, up 24% from the same 2018 period. It cited cost savings and higher prices for AkzoNobel products.
But AkzoNobel’s latest filing shows its marine coatings revenues are weak, though profitability improved. “Revenue in the first half-year was flat, and 1% lower in constant currencies,” the company said.
Amsterdam-based AkzoNobel, which employs 34,500 people worldwide, said its two-pronged drive of cost savings and better returns on sales and investments by 2020 is working, “in particular in marine coatings.” It said its “”new innovation lab in the UK started to develop product innovations for the marine and the oil and gas industries.”
AkzoNobel wants to achieve a return on sales of 15% by 2020. It reached almost 14% in Q2. The company is on track to slash costs by €200m in 2020.