AkzoNobel has released its Q2 results.
Adjusted operating income was 36% higher at €305M (2018: €225M).
The company's strategy of focusing on value over volume resulted in price/mix up 5% and 6% lower volumes.
The transformation is on track and delivered €43 million cost savings.
Also, the acquisition of Mapaero, announced July 18, 2019, further strengthens its aerospace coatings business.
Revenue was flat and up 1% in constant currencies, with positive price/mix of 5% and acquisitions contributing 1%, offset by 6% lower volumes.
Adjusted operating income up 36% at €305M, driven by ongoing pricing initiatives and cost-saving programmes; ROS at 12.4% (2018: 9.2%)
Operating income at €308M includes €3M positive impact from identified items, related to a gain on disposal following asset network optimisation (€57M) and transformation costs (€54M); 2018 operating income at €192M included €33M negative identified items.
Decorative Paints ROS was up at 13.5% (2018: 12.2%); Performance Coatings ROS up at 13.6% (2018: 11.8%).
AkzoNobel CEO, Thierry Vanlancker, commented:
“We remain fully focused on delivering our 'Winning together: 15 by 20' strategy and our Q2 results show we’re making progress with profit up 36%.
"Return on sales was 13.7% for the quarter, moving us another step closer to our 2020 ambition of 15%.
“This was an important quarter for us to demonstrate our strategy is working.
"Q2 performance improved largely due to our ongoing pricing initiatives and cost-saving programmes, despite headwinds in the external business environment.
"This is a rewarding step for the organisation and encouraging for the work still ahead of us as we continue our transformation journey.
“In the face of softer market trends, we continue to focus on delivering our strategy while investing in strategic growth opportunities, to become recognised as the reference in the paints and coatings industry.”