AkzoNobel is active in the fields of decorative paints, performance coatings and specialty chemicals and employs approximately 49,600 people (including its Specialty Chemicals business). The
company reported coatings sales of $13.3 billion for 2013. The company has successfully completed its multi-year performance improvement program a year ahead of schedule, exceeding its targets
in doing so. In 2014, AkzoNobel will continue to restructure to
reduce costs further and anticipates related restructuring charges of
at least $342 million.
“We indicated at the start of 2013 that trading conditions would
continue to be challenging and that has proven to be the case,” CEO
Ton Büchner stated in its Annual Report. “In response we acceler-
ated our company-wide improvement actions and have brought our
performance improvement program to a successful conclusion a year
ahead of schedule and above target. While the first half of 2013 was
impacted by weaker trading conditions and specific one-off events in
Specialty Chemicals, the second half has shown early signs of stabili-
zation in several end markets. In combination with our restructuring
actions this positive effect has been evident in our improving return
on sales in the third and fourth quarters, despite foreign currency
headwinds. In 2014, we will continue to improve our ability to lever-
age our strong brands and leading market positions.”
Decorative Paints full-year revenue was $5.71 billion, down
3 percent as a result of adverse currency effects and divestments.
Global volumes for the year were up 3 percent, with increases in all
regions except Europe, which remained flat in a reflection of difficult
trading conditions. The pick-up in overall volumes was particularly
noticeable in the second half of the year; Q3 and Q4 volumes were
each up 5 percent compared with the prior year. Margins improved
as a result of strong margin management and lower raw material
prices. Performance improvement and restructuring measures led
to a lower cost base, which, combined with lower restructuring
charges, drove operating income above the previous year, before
the divestment gain on Building Adhesives.
Full-year revenue at Performance Coatings, which includes auto
and aerospace coatings, powder coatings, marine and protective coat-
ings, and industrial coatings, was $7.63 billion, a 2 percent decline on
flat volumes as adverse currency effects outweighed a positive price/
mix development. Volumes gradually improved throughout the year
to be flat overall, and up 2 percent in Q4. Margins were maintained
despite higher restructuring costs. Operating income for the year as a
whole was down 3 percent, with underlying improvements offset by
higher restructuring charges as well as adverse currencies. Restructur-
ing activities were accelerated in the fourth quarter, with the intended
closure of seven sites worldwide being communicated.
AkzoNobe improved its return on sales in the third and fourth
quarters and report that they remain on track to deliver its 2015
targets. “Key profitability ratios and cash flow also improved, while
the receipt of funds from the divestments of our Decorative Paints
North America and Building Adhesives businesses meant that we
did not need to refinance borrowings, which helped us to improve
our net debt position at year-end,” Büchner added. “Capital expenditures were reduced, reflecting the completion of many of our
longer term strategic investment programs, while operating working
capital further declined.”
Key Developments 2013
New Products Launched
• Decorative Paints: Launched Coral Coralit Zero in Brazil, a water-
based trim paint
• Decorative Paints: Launched the Dulux Ambiance range in China,
a zero-VOC range of paint
• Marine Coatings: Launched Intersleek 1100SR and Intercept
7000/8000, fouling control coatings
• Marine Coatings: Launched the Nautical product range, a value
brand for the private label market
• Automotive Coatings: Launched Sikkens Autowave 2.0, a low
VOC waterborne basecoat
• Powder Coatings: Launched Interpon D2525 Eternity range, a
heat-reflective coating for buildings
• Powder Coatings: Launched Interpon Align, dry-on-dry coatings
technology to improve productivity and lower energy consumption
• Completed divestment of Decorative Paints North America
• Divested Building Adhesives, a standalone sub-business unit with
Decorative Paints
• Divested the Decorative Paints store network in Germany
01AkzoNobel Amersterdam, the Netherlands www.akzonobel.com
PUBLIC COMPANY
YEAR ESTABLISHED: 1994
REVENUE: $13.3 billion s (2012: $12.85 billion)
MARKETS SERVED
• Decorative paints • Marine and protective coatings
• Auto and aerospace coatings • Industrial coatings
• Powder coatings
KEY EXECUTIVES
Ton Büchner, chairman and CEO; Ruud Joosten, executive
committee member, Decorative Paints; Conrad Keijzer, executive
committee member, Performance Coatings; Coatings marketing
directors: Sucheta Govil (Decorative Paints), Roger Jakeman
(Performance Coatings); technical directors: Trudy Schoolenberg
(Decorative Paints), Klaas Kruifhof (Performance Coatings);
Decorative Paints Latin America - key manager: Jaap Kuiper;
Decorative Paints China & North Asia - key manager: Lin Lianqi;
Decorative Paints North and Central Europe - key manager: Amit
Jain; Decorative Paints South East Europe & Africa - key manager:
Jan-Piet van Kesteren; Decorative Paints India & South East Asia -
key manager: Jeremy Rowe; Automotive and Aerospace Coatings
- key manager: Jim Rees; Marine and Protective Coatings - key
manager: Rob Molenaar; Industrial Coatings - key manager: AB
Ghosh; Powder Coatings- key manager: John Wolff.
