AkzoNobel lowers profit forecast

Chemicals and coatings concern AkzoNobel on Tuesday announced second quarter net profit of €184m, down from €225m a year earlier. Turnover in the second quarter rose 2% to €3.87bn, the company reported.

AkzoNobel said it expects weak economic conditions and higher costs for raw materials for the rest of the year and has slightly lowered its full-year forecast. It said operating results for 2008 will not match last year’s level (€1.87bn) but will not be far below as long as exchange rates remain stable.
The company reported a 4% fall in sales by its decorative paints division and said the 7% growth in industrial coatings was completely wiped out as a result of exchange rates.
Its chemicals unit was badly hit by high raw materials and energy prices, said AkzoNobel.
AkzoNobel said that the integration of the British firm ICI is on target to achieve €340m in cost savings.

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