Edition:
India

Akzo Nobel Q1 Adjusted Operating Income Up At 163 Million Euros


Wednesday, 24 Apr 2019 

April 24 (Reuters) - AKZO NOBEL NV ::ON TRACK TO RETURN A TOTAL OF €6.5 BILLION TO SHAREHOLDERS.Q1 ADJUSTED OPERATING INCOME 9% HIGHER AT EUR 163 MILLION.Q1 COST-SAVING PROGRAMS DELIVERED EUR 38 MILLION.Q1 VOLUMES LOWER DUE TO VALUE OVER VOLUME STRATEGY.Q1 ADJUSTED OPERATING INCOME EUR 163 MILLION VERSUS EUR 176 MILLION IN REUTERS POLL.€639 MILLION CASH PAYMENTS TO MAIN UK PENSION PLANS.OUR TRANSFORMATION PLANS FOR CREATING A MORE FIT-FOR-PURPOSE ORGANIZATION ARE ON TRACK AND DELIVERED SAVINGS OF EUR 38 MILLION DURING QUARTER.Q1 ONGOING PRICING INITIATIVES RESULTED IN PRICE/MIX UP 6%.Q1 REVENUES EUR 2.18 BILLION VERSUS EUR 2.20 BILLION IN REUTERS POLL.Q1 ROS, EXCLUDING UNALLOCATED COSTS, INCREASED TO 9.1% (2018: 8.7%).DEMAND TRENDS DIFFER PER REGION AND SEGMENT IN AN UNCERTAIN MACRO-ECONOMIC ENVIRONMENT..RAW MATERIAL INFLATION IS EXPECTED TO CONTINUE DURING FIRST HALF OF 2019, ALTHOUGH AT A LOWER RATE THAN 2018..ROBUST PRICING INITIATIVES AND COST-SAVING PROGRAMS ARE IN PLACE TO ADDRESS CURRENT CHALLENGES..WE CONTINUE EXECUTING OUR TRANSFORMATION TO DELIVER NEXT EUR 200 MILLION COST SAVINGS BY 2020, INCURRING ONE-OFF COSTS IN 2019 AND 2020.WE TARGET A LEVERAGE RATIO OF BETWEEN 1.0-2.0 TIMES NET DEBT/EBITDA BY END OF 2020 AND COMMIT TO RETAIN A STRONG INVESTMENT GRADE CREDIT RATING..