Dutch AkzoNobel swings to Q3 net loss of €2.38bn

18 October 2012 08:23  [Source: ICIS news]

SINGAPORE (ICIS)--AkzoNobel said on Thursday it swung to a net loss of €2.38bn ($3.09bn) in the third quarter from a €149m net profit in the 2011 third quarter, weighed by a €2.5bn impairment charge on the firm’s decorative paints business.

The company’s revenue rose by 6% year on year to €4.28bn in July-September this year, while its earnings before interest, tax and depreciation (EBITDA) rose by 7% to €540m, the Dutch coatings and specialty chemicals maker said in a statement.

AkzoNobel said that the cost of its raw materials in the third quarter was slightly higher than the same period of last year, but has levelled off versus the second quarter of 2012.

“The price of TiO2 [titanium dioxide] has [been] reduced, but is still higher than the previous year and there has been some volatility from oil-related feedstock,” the company said.

“The company expects average raw material costs for the year [to be] slightly up due to the oil price increase in the second quarter,” it added.

For the first nine months of this year, the company swung to a net loss of €2.11bn, from a net profit of €545m in the same period in 2011.

Its sales were up by 6% year on year at €12.7bn, while EBITDA was up by 4% at €1.56bn.

“During the year, the economic slowdown, particularly in Europe, is having an adverse impact on AkzoNobel’s volumes. Additional restructuring activities are therefore being initiated to further reduce costs in the businesses that are most affected,” the firm said.

“The company is confident with regard to the long-term growth of its business, but remains cautious over the shorter-term development of its markets,” it added.

($1 = €0.76)

By: Nurluqman Suratman

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