AkzoNobel, a paints, coatings and specialty chemicals company, has posted a decline of 10% in the revenues to E3.66 billion, as compared to previous years E4.08 billion. The EBITDA for the company also decreased by 9% to E527 million, as compared to E577 million for Q2, 2008. Net income for the company also reduced by 13% to E155 million, compared to E179 million for prior year.
Hans Wijers, CEO of AkzoNobel, said: “In March, we saw early indications that markets may be stabilizing and we have seen that trend continue into the second quarter. However, this gradual stabilization is at significantly lower levels than 2008. With the exception of some emerging markets, we see little significant recovery of growth. Due to the continuing economic uncertainty, forward visibility still remains limited. Therefore, management actions continue to focus on customers, costs and cash. Our Q2 results show that these actions are beginning to bear fruit.”
AkzoNobel plans to focus on margin management, cost reduction, and cash generating actions so that it is well positioned to meet the current challenges, and will be in good shape to take advantage of the recovery when it comes, said the company.
AkzoNobel seeks to remain focussed to achieve its medium-term target of an EBITDA margin of 14% by the end of 2011, deliver the combined E540 million synergies and restructuring initiatives, drive margin management programs, and rigorous cost and cash control across the company.