Write-offs push AkzoNobel €2.4bn into the red, operating profit rises
Thursday 18 October 2012
Paints and coatings giant AkzoNobel posted a loss of €2.4bn in the third quarter of this year following write-offs in its decorative paints division.
Operating profit was up 7% to €540m, the company said in a statement. Turnover rose 6% to €4.3bn, helped by currency effects.
'AkzoNobel has undertaken a prudent review, excluding restructuring benefits, of the balance sheet, taking into account lower than expected market growth rates,' the statement said. 'This has resulted in a non-cash impairment charge against the decorative paints businesses’ assets, primarily in Europe.'
Chief financial officer Keith Nichols said the impact of the economic slowdown is primarily being felt in the consumer businesses.
'Looking forward, the principal concern remains the decorative paint markets in Europe,' he said. 'As we cannot expect quick recovery of the economy, we also will continue to implement our ongoing improvement agenda in order to increase our profitability.'
On Wednesday the company said chief executive Ton Büchner will return to the company by the end of the year.