Dutch AkzoNobel's Q2 net profit up 96% on divestment gains

18 July 2013 07:26  [Source: ICIS news]

SINGAPORE (ICIS)--AkzoNobel’s net income surged by 96% year on year to €429m ($564m) in the second quarter of this year, buoyed by the divestment of its North American decorative paints business, the Amsterdam-headquartered paints and coatings company said on Thursday.

Its revenue was down by 4% year on year to €3.87bn in the April-June period, mainly due to divestments, while its operating income fell by 17% to €322m, the company said in a statement.

The divestment of Decorative Paints North America was completed on 1 April this year and resulted in €779m worth of cash inflows and a transaction gain of €115m, it said.

For the first six months of this year, the company’s net income rose by 71% year on year to €518m, while its revenue was down by 5% at €7.33bn.

Its operating income for January-June this year fell by 14% year on year to €539m.

“The economic environment remains challenging and we do not expect an early improvement in the trends in our end-user market segments,” the company said.

“Our full year operating income is unlikely to exceed the €908m of 2012,” it added.

($1 = €0.76)

By: Nurluqman Suratman

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