AkzoNobel to cut 3,500 jobs, defers share buyback

29 September 2008 09:25  [Source: ICIS news]

SINGAPORE (ICIS news)--Netherlands-based AkzoNobel will cut 3,500 jobs by 2011 and defer its share buyback programme in light of the volatility in the global financial markets and a €1.8bn ($2.6bn) debt repayment, it said on Monday.

"ICI synergies, combined with these additional net cost savings, will result in a total reduction of 3,500 jobs by 2011," said CEO Hans Wijers in a statement. 

The company expected to achieve an approximate €100m in additional net cost savings through the exercise that would include driving margin management programmes across the company, improving pricing and procurement activities.

As per the new restructuring plan, the company would target an earnings before interest, tax, depreciation and amortisation (EBITDA) margin of at least 14% by the end of 2011.

It would also aim to deliver synergies from the ICI deal faster with all synergies projected to be realised by 2010, Wijers said.

"After a major transformation process which streamlined and refocused the company, it’s now time for us to deliver on what we promised and, in today’s very different economic landscape, significantly improve our performance," said Wijers.

AzkoNobel also announced a series of operational goals that would target margin management within its specialty chemicals business; focus on organic growth in its performance coating segment and a new branding approach in its decorative paints arm.

Wijers added that the company’s full year EBITDA expectations would be close to the 2007 pro forma level of €1.87bn.

($1 = € 0.68)

To discuss issues facing the chemical industry go to ICIS connect

By: Bohan Loh
+65 6780 4359

< previous article(VIDEO - ICIS news Asia Lunchtime Bulletin 16 October 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly