• Adjusted operating income1 36% higher at €305 million (2018: €225 million)
  • ROS, excluding unallocated costs,2 increased to 13.7% (2018: 12.1%)
  • Focus on value over volume resulted in price/mix up 5% and 6% lower volumes
  • Transformation on track and delivered €43 million cost savings
  • Acquisition of Mapaero, announced July 18, 2019, further strengthens our aerospace coatings business

Q2 2019:

  • 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 €305 million (2018: €225 million, which included €20 million of one-off costs) driven by ongoing pricing initiatives and cost-saving programs; ROS at 12.4% (2018: 9.2%) • Operating income at €308 million includes €3 million positive impact from identified items, related to a gain on disposal following asset network optimization (€57 million) and transformation costs (€54 million); 2018 operating income at €192 million included €33 million negative identified items
  • Decorative Paints ROS up at 13.5% (2018: 12.2%); Performance Coatings ROS up at 13.6% (2018: 11.8%)
  • Adjusted EPS from continuing operations up 85% at €0.96 (2018: €0.52); EPS from total operations at €1.07 (2018: €1.06)

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 programs, despite headwinds in the external business environment. This is a rewarding step for the organization 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 recognized as the reference in the paints and coatings industry.”

Source: Akzo Nobel

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