19 April 2012 07:04 [Source: ICIS news]
SINGAPORE (ICIS)--AkzoNobel had a 44.5% year-on-year decline in its first-quarter 2012 net profit to €71m ($93m) amid high raw material costs, the Dutch chemicals producer said on Thursday.
The company’s revenue rose by 6% year on year to €3.97bn in the January-March period of 2012, mainly driven by pricing actions to offset higher raw material costs, it said in a statement.
Its earnings before interest, tax, depreciation and amortisation (EBITDA) slipped by 3% year on year to €423m, due to weaker end markets and cost inflation, the company said.
"We are continuing to focus on performance improvement,” said AkzoNobel CEO Hans Wijers in the statement.
“Our global margin management efforts are also proving successful as we continue to mitigate the adverse effects of higher raw material costs. However, our volumes were down slightly, reflecting the volatile nature of the economic conditions,” Wijers added.
Looking ahead, the company said that overall economic environment and certain raw materials prices remain “principal sensitivities” in 2012.
“The company expects the higher oil and titanium dioxide (TiO2) prices on average to have an inflationary impact,” it added.
($1 = €0.76)
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