20 October 2011 11:12 [Source: ICIS news]
LONDON (ICIS)--AkzoNobel has launched a performance improvement programme to deliver additional earnings before interest, tax, depreciation and amortisation (EBITDA) of €500m ($685m) from 2014, the Dutch speciality chemicals producer said on Thursday.
The total cost to deliver the programme is estimated to be €425m over three years, the company added.
AkzoNobel said it will restructure underperforming parts of its portfolio to strengthen its competitiveness, enhance its ability to grow, simplify its support structures and reduce its cost base.
“This performance improvement programme represents a major change in the way AkzoNobel is run and managed. It is a logical next step which will leverage our scale to support the delivery of the growth strategy that we announced in September 2010,” said CEO Hans Wijers.
“The perfect storm of unprecedented raw material price inflation in combination with the effects of the financial crisis only adds to our sense of urgency to capture the benefits of the programme,” he added.
The programme also includes business restructuring in AkzoNobel’s decorative paints business in Europe and ?xml:namespace>
Earlier on Thursday, AkzoNobel reported a third-quarter net profit of €149m, down by 37% year on year, as higher cost of sales and other expenses offset its growth in sales, which were up by 4.7% year on year to €4.05bn in the same period.
($1 = €0.73)
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