Akzo Nobel N.V. reported third quarter revenues of € 3,778 million, 5 percent
lower compared with the same period last
year. The decrease was a consequence of
adverse currency effects and divestments.
Lower restructuring costs and higher volumes helped push Q3 operating income
up 22 percent to €303 million.
The third quarter saw AkzoNobel
divest its Building Adhesives business
and announce plans to drive further efficiency and performance improvements
within Functional Chemicals and in
Germany, as well as plans to streamline
the management structure in Decorative
Paints to improve competitiveness. The
company also published details of investments totaling more than € 50 million in two new manufacturing facilities
to meet growing demand in western
China. AkzoNobel furthermore maintained its number one ranking in the
Dow Jones Sustainability Index, heading
the Materials industry group.
Decorative Paints revenues of €1,136
million in the third quarter were stable
versus the previous year, with higher
volumes offset by adverse currency effects. Although conditions in Europe
remained challenging in general, global
volumes were up on the same quarter
last year. Lower costs and lower restructuring charges contributed to increased
operating income for Q3 2013 of €107
million, more than double the previous
year’s figure.
Quarterly revenue at Performance
Coatings declined 4 percent to €1,415
million compared with last year, with the
decline attributable to adverse currency
effects. Whilst overall volumes were up 2
percent, weak demand in Europe continued to impact all businesses. Q3 restructuring costs were lower in 2013 than a
year earlier, as a result of which operating
income showed an improvement, up 23
percent at €160 million.
Revenue in Specialty Chemicals was
10 percent lower at €1,252 million,
primarily as a result of the divestment
of Chemicals Pakistan and negative currency effects. Overall volumes were flat
compared with a year earlier. Operating
income was down 20 percent at €107 million, mainly as a consequence of one-off
restructuring costs incurred as part of the
performance improvement program in
the Functional Chemicals Business Unit.
PPG Reports Third Quarter
Results
PPG Industries reported third quarter
2013 net sales of $4 billion, up 17 percent
versus the prior year. Third quarter 2013
reported net income from continuing operations was $220 million, or $1.52 per
diluted share, and adjusted net income
from continuing operations was $353
million, or $2.44 per diluted share. Third
quarter 2012 reported net income and
earnings per diluted share from continuing operations were $288 million and
$1.86, respectively. There were no nonrecurring charges in the prior-year quarter.
“We continued to deliver record financial performance in the third quarter as
positive impacts from our cash deployment and our strong operating focus
were coupled with a broader improvement in market conditions,” said Charles
E. Bunch, PPG chairman and chief executive officer. “Aerospace and automotive
OEM coatings remained PPG’s most consistent growth drivers, with many other
businesses contributing to the overall
sales and earnings growth.
Performance Coatings segment net
sales for the quarter were $1.6 billion,
up 34 percent, or $409 million, versus
the prior year due primarily to the addition of sales from acquired businesses.
Segment volumes, excluding acquisitions,
declined 2 percent, as the impact of lower
marine new-build industry demand in
Asia offset growth in all other businesses.
Currency translation reduced sales by 1
percent. Aerospace net sales advanced
more than 10 percent as continued strong
end-use market demand gains were sup-
plemented by sales from acquired busi-
nesses. Automotive refinish net sales grew,
aided by strong emerging-region volume
growth that offset negative currency im-
pacts and a modest volume decline in
Europe. North American architectural
coatings net sales, excluding acquisitions,
were up mid-single-digit percentages,
reflecting consistently higher market de-
mand. Segment earnings improved $49
million, or 24 percent, to $252 million as
a result of acquired businesses’ earnings
and lower costs that stemmed from busi-
ness restructuring actions and ongoing
cost management.
Industrial Coatings segment net sales
for the quarter were $1.2 billion, ad-
vancing about 10 percent, or $109 mil-
lion, versus the prior year due to higher
volumes and modest acquisition-related
gains. Volumes in automotive original
equipment manufacturer (OEM) coat-
ings grew by about 10 percent globally.
Global industrial coatings business unit
volumes improved mid-single-digit per-
centages and volume trends improved in
all regions in comparison with the first
half of 2013. Global packaging coatings
volumes grew modestly. Segment earn-
ings for the quarter were $181 million, up
18 percent as a result of higher volumes
and continued cost management.
Architectural Coatings – EMEA
(Europe, Middle East and Africa) seg-
ment net sales for the quarter were $571
million, up $7 million, or 1 percent, ver-
sus the prior year as lower volumes offset
favorable foreign currency translation.
For the third quarter volumes declined by
4 percent year over year. Despite the low-
er volumes, segment earnings of $73 mil-
lion represented growth of $17 million,
or 30 percent, versus the prior year, aided
by aggressive discretionary cost-manage-
ment actions and lower costs, including
benefits from prior restructuring actions.
Currency translation contributed $2 mil-
lion to segment earnings. CW
2013 AkzoNobel Q3 Results
