AkzoNobel reports strong fourth quarter results
AkzoNobel reported a revenue increase of
12 percent for the year 2010 to € 14. 6 billion. EBITDA increased 16 percent to
€1,964 million, with EBITDA margins up
at 13. 4 percent. Total 2010 net income increased 165 percent to €754 million. Revenue growth was driven by a six percent
volume increase across its three business
areas as demand recovered, particularly in
high growth markets. For the fourth quarter, volumes were up three percent, pricing improved four percent and EBITDA
rose three percent to €377 million. The
total net income amounted to €162 million. Raw material prices increased in
2010, particularly in the second half of the
year. The company expects 2011 prices to
increase further. Pricing and cost reduction actions are ongoing. Net debt decreased from €1,744 million at year-end
2009 to €936 million at year-end 2010,
mainly due to the National Starch divestment generating €1 billion of cash. Net
cash from operating activities was €519
million (2009: €1,220 million) reflecting
investment in working capital facilitating
growth and higher restructuring payments
in 2010. In September 2010, the company
announced a simplified dividend policy,
stating that it intends to pay a stable to
rising dividend. In line with this policy,
AkzoNobel is proposing a final dividend
of €1.08, which would make a total 2010
dividend of €1.40, up four percent from
€1.35 in 2009. “Our 2010 performance
marks the first year of delivery of our new
strategy. All business areas have reported
strong revenue growth, increased profitability, improved sustainability performance and higher returns on invested
capital,” said CEO Hans Wijers. “
AkzoNobel’s revenue in high growth markets, currently representing around 40
percent of our total, grew more than 20
percent, outperforming the market in
2010. In our mature markets, revenue increased close to ten percent, further evidence that our medium-term growth plans
are on track. Broad demand improvement
in both mature and high growth markets
for specialty chemicals led to a full-year
EBITDA increase of 27 percent. Performance coatings delivered a solid performance, supported by volume growth and
selective acquisitions, although EBITDA
margins were impacted by higher raw material costs. Double-digit revenue growth
for decorative paints was achieved in Asia
and Latin America, with lower volumes in
mature markets.”
RPM reports fiscal 2011
second-quarter results
RPM International Inc. reported that on
a pro-forma basis, improvements were realized in net sales, net income and earnings per share for its fiscal 2011 second
quarter ended November 30, 2010. Prior-year pro-forma results assume that the de-consolidation of its Specialty Products
Holding Corp. (SPHC) and subsidiaries,
which eliminated approximately $300
million in annual revenues from the company’s industrial segment beginning June
1, 2010, occurred before fiscal 2010. Net
sales, net income and earnings per share
all posted improvements. Net sales grew
5. 3 percent to $826.3 million from
$784.5 million, while net income was up
2.3 percent, to $48.8 million from $47.7
million a year ago. Consolidated EBIT
grew 2.7 percent, to $89.4 million from
$87.1 million in the year-ago second quarter. “On a prior-year pro-forma basis,
which offers a better comparison to cur-rent-year actual results, RPM’s industrial
segment continued a trend of year-over-year sales increases on the strength of our
businesses concentrated in maintenance,
repair and infrastructure, while our consumer segment faced the challenges of
tough comparisons following record results in the fall of 2009. Both segments remain challenged by higher raw material
costs, mainly due to capacity reductions
by suppliers, which has exerted downward pressure on our gross margins,” said
Frank Sullivan, chairman and CEO. On
an as reported basis, RPM’s net sales of
$826.3 million were down 3. 8 percent
from the $858.7 million reported in the
fiscal 2010 second quarter. Net income
was off 12. 7 percent, to $48.8 million
from $55.9 million in the year-ago second
quarter. Consolidated EBIT dropped 4.1
percent to $89.4 million from $93.4 million a year ago. Industrial segment sales
grew eight percent to $582.5 million in
the fiscal 2011 second quarter from
$539.2 million a year ago. Industrial segment EBIT increased 0.7 percent, to $68.7
million from $68.2 million in the fiscal
2010 second quarter. “Industrial sales
growth in the second quarter continued to
benefit from strong sales comparisons in
corrosion control coatings and high performance polymer flooring, while domestic and international sealants lines
continued to struggle in the face of weak
new construction markets,” Sullivan said.
RPM’s consumer segment had a 0.6 percent decline in net sales to $243.8 million
from $245.2 million in the fiscal 2010 second quarter. Consumer segment EBIT fell
14. 4 percent, to $27.3 million from $31.9
million a year ago. “Our consumer lines
maintained or grew their market share,
despite challenges in their end markets
and tough prior-year comparisons,” said
Sullivan.
Valspar reports weak
results for first-quarter
The Valspar Corporation reported its results for the first-quarter ended January
28, 2011. First-quarter sales totaled
$842.4 million, a 25. 3 percent increase
from the first quarter of 2010. Net income
for the first quarter was down to $33.4
million in 2011 from $33.9 million in
2010. “Results for the quarter were in line
with our expectations,” said William
Mansfield, Valspar chairman and CEO.
“Our Australian paints acquisition and
the continued success of our pricing and
new business efforts drove our double-digit top line growth. Looking ahead, we
