Economic downturn, raw material costs hit Akzo Nobel

Paint and coatings maker Akzo Nobel booked a 5% increase in turnover in the final quarter of last year, largely due to higher prices.


But operating profit (ebitda) fell 20% to €301m and the company booked a net loss of €62m due to one offs and a charge in connection with a restructuring operation.
Azko Nobel, said to be the world’s biggest maker of household paints, booked full year 2011 net profit of €469m. Full year revenues rose 7% to €15.7bn.
‘2011 was a challenging year against the background of weaker global economic conditions and unprecedented raw material price inflation, CEO Hans Wijers said in a statement.
The absolute impact of increased raw material prices on the company’s 2011 results was approximately €1bn, Wijers said. ‘Despite this significant headwind, our reported pricing actions have now offset most of this, and for the year ahead we expect to see the full-year benefit of these increases.’

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