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Report
Turkish town transformed with rainbow of color
We've transformed the lives of hundreds of people in a town on Turkey's Aegean coast as part of a major Let's Colour project. More than 50,000 liters of our Marshall paint brand has been used to revitalize over 400 homes in the hilltop neighborhood of Tepe in Kusadas1. It's the latest example of how our passion for paint can help to make a difference.
#AkzoNobelCares
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AkzoNobel I Report for the first quarter 2019 2
Our results at a glance
2020 guidance*
Q1 2019 results show progress towards Winning together: 15 by 20 strategy
ROS 15%
ROI >25%
" Adjusted operating income 9% higher at ¬163 million
- Raw material inflation continued; variable costs ¬77 million higher
- Ongoing pricing initiatives resulted in price/mix up 6%
- Cost-saving programs delivered ¬38 million
- Volumes lower due to value over volume strategy
" ROS, excluding unallocated costs, increased to 9.1% (2018: 8.7%)
- Decorative Paints continued good momentum in seasonally lower quarter
- Automotive and Specialty coatings impacted by order pattern
" On track returning a total of ¬6.5 billion to shareholders
" ¬639 million cash payments to the main UK pension plans
Q1 2019:
" Revenue was flat in a seasonally low quarter; up 1% in constant currencies, with positive price/mix offset by 7% lower volumes; acquisitions contributed 1%
" Adjusted operating income up 9% at ¬163 million (2018: ¬149 million, which included gains on disposals) driven by ongoing pricing initiatives and cost-saving programs; ROS at 7.5% (2018: 6.8%)
" Operating income at ¬113 million includes ¬50 million adverse impact from identified items, mainly related to transformation costs and non-cash impairments (2018: operating income of ¬108 million was negatively impacted by ¬41
million identified items)
" Decorative Paints ROS up at 7.1% (2018: 6.6%) supported by 6% positive price/mix, driven by ongoing pricing initiatives
" Performance Coatings ROS up at 10.3% (2018: 10.0%); continued pricing initiatives contributed to price/mix of 7%
" Adjusted EPS from continuing operations up 30% at ¬0.46 (2018: ¬0.35); net income from total operations at ¬65 million
(2018: ¬253 million, including ¬134 million results from discontinued operations)
Outlook:
We are delivering towards our Winning together: 15 by 20 strategy and continue creating a fit-for-purpose organization for a focused paints and coatings company, contributing to the achievement of our 2020 guidance. Demand trends differ per region and segment
