24 February 2009 09:22 [Source: ICIS news]
SINGAPORE (ICIS news)--AkzoNobel has recorded a fourth-quarter net loss of €1.5bn ($1.9bn), caused by a one-time impairment of intangibles from its acquisition of ICI that totalled €1.2bn in the fourth quarter of 2008, the company said on Tuesday.
"Our fourth-quarter results reflect the impact of the economic climate in many of our businesses," CEO Hans Wijers said.
After taking the current condition of the market into consideration, AkzoNobel regulated its assets to match the current expectation. "This adjustment has resulted in a non-cash impairment charge of €1.2bn after tax in Q4", the company revealed on Tuesday.
"This non-cash adjustment relates to the decorative paints businesses and the reclassification of National Starch, which was originally recorded in our books as an asset held for sale," AkzoNobel further said.
Through an incidental cost incurred from €205m to €275m, AkzoNobel said it launched plans to improve operational effectiveness and this reaped an additional cost savings of at least €100m.
"AkzoNobel is confident it will complete its 2009 refinancing needs," the company said.
($1 = €0.78)
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