MOSCOW (MRC) -- Akzo Nobel NV said that first-quarter net profit was up 45% on lower financing costs, while revenue fell 2% because of currency losses and despite higher volumes in all of its businesses, said The Wall Street Journal.
Net profit for the first three months of the year was EUR129 million (EUR178 million) compared with EUR89 million a year earlier.
Akzo Nobel, one of the world's leading paint and coatings makers, said revenue slipped to EUR3.38 billion from EUR3.47 billion a year earlier. While rising volumes and higher priced goods added 4% to sales, foreign exchange rates had a negative impact of 5%.
Under the leadership of Chief Executive Ton Buchner, Akzo Nobel set new financial targets for 2015 and accelerated plans to further streamline the paints and chemicals group.
Akzo Nobel, best known for paint brands such as Dulux and Sikkens, said it remains on track to reach its 2015 financial targets. It aims to achieve a 9% return on sales, a 14% return on invested capital and a net debt to earnings before interest, taxes, depreciation and amortization ratio lower than 2.0.
"These results are a further step towards the delivery of Akzo Nobel's 2015 targets," Chief Financial Officer Keith Nichols said. "Despite higher restructuring charges, continued adverse currency effects and ongoing weakness in Europe, our year-on-year return on sales, both before and after higher restructuring charges, improved for the third consecutive quarter."
Akzo Nobel's return on sales rose to 6.4% in the first quarter, from 6.3% in the first quarter of 2013. Excluding restructuring costs, its operating margin stood at 7.7%, up from 7.1%.
As MRC wrote before, AkzoNobel has completed the sale of its Primary Amides chemicals business to PMC Group effective December 31, 2013.
Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people.
MRC