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Report
New dawn rises with 2020 Color of the Year
Our Color of the Year for 2020 is Tranquil Dawn, which also features in all four ColourFutures 2020 color palettes. They're designed to empower and inspire customers and make the task of choosing color easier.
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AkzoNobel I Q3 report 2019 2
Our results at a glance
2020 guidance*
ROS 15%
ROI >25%
Highlights Q3 2019:
" Adjusted operating income up 23% at ¬300 million (2018: ¬243 million)
" ROS, excluding unallocated costs, increased to 13.8% (2018: 12.3%)
" Transformation on track and delivered ¬19 million cost savings
" Adjusted EPS from continuing operations up 62% at ¬0.97 (2018: ¬0.60)
" New share buyback announced, ¬500 million to be completed in the first half of 2020
Summary of financial outcomes
Third quarter
Q3 2019:
" Revenue up 3% and 2% higher in constant currencies, with positive price/mix of 4% and acquisitions contributing 1%,
offset by 4% lower volumes
" Adjusted operating income up 23% at ¬300 million (2018: ¬243 million) driven by ongoing pricing initiatives and cost-saving programs; ROS increased to 12.5% (2018: 10.4%)
" Operating income at ¬247 million includes ¬53 million negative impact from identified items, related to transformation costs and non-cash impairments; 2018 operating income at ¬237 million included ¬6 million negative identified items
" Decorative Paints ROS up at 13.8% (2018: 12.1%); Performance Coatings ROS up at 13.7% (2018: 12.2%)
" Net income from total operations at ¬162 million, including ¬nil million from discontinued operations (2018: ¬301 million,
including ¬152 million from discontinued operations)
" Adjusted EPS from continuing operations up 62% at ¬0.97 (2018: ¬0.60); EPS from total operations at ¬0.79 (2018: ¬1.18)
" ¬2.2 billion of the ¬2.5 billion share buyback program completed
" Interim dividend of ¬0.41 per share
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 in an uncertain macro-economic environment. Raw material inflation is expected to have a favorable effect on the remainder of 2019. Continued pricing initiatives and cost-saving programs are in place to address the current challenges. We continue executing our transformation to deliver the previously announced ¬200 million cost
