Akzo Nobel posts 35% rise in Q2 operating profits

24 July 2007 08:51  [Source: ICIS news]

MUMBAI (ICIS news)--Akzo Nobel's second-quarter operating profits before incidentals from continuing operations rose 35% year on year to €279m ($385.32m) on strong growth in its coatings and chemicals segments, it said on Tuesday.

While reporting a 25% drop in second-quarter net profits, the Dutch-based firm said its overall operating performance was strong with its coatings business growing 5% and its chemicals division growing by 4%, while net income from both segments grew 34% to €166m during the period.

The company also reported a 24% rise in earnings before interest tax depreciation and amortisation (EBITDA) to €367m ($506.8m) during the quarter, while gross profits rose 9.4% to €1.1bn.

"We are continuing to deliver operationally, especially in terms of margin enhancement, as we prepare to push ahead with our ambitious global growth plans," said Akzo's CEO Hans Wijers.

The company’s second-quarter operating income rose 32% to €251m.

"Overall, functional chemicals posted an operating income slightly above last year, despite the impact of currency and raw materials," the company said.

"Akzo Nobel is continuing to actively monitor opportunities to make strategic investments, while seeking value-enhancing acquisitions. It has significant opportunities for both geographic and product expansion," it said.

The company would also delist its American Depositary Receipts (ADRs) from the NASDAQ stock exchange, it said.

"The company intends to file a Form 25 with the Securities and Exchange Commission (SEC) and NASDAQ on or about 15 August to effect the delisting, which would be effective ten days after this filing," it added.

($1 = €0.72)

By: Divya Chowdhury
+65 6780 4359

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