AkzoNobel Announces Full Year 2019 and Fourth Quarter Results

despite the weakening demand for end-of-end markets, we are steadily advancing their transformation plans to successfully improve profitability
AkzoNobel (stock code: AKZA; AKZOY) reported full-year and fourth-quarter resultsfourth-quarter results for 2019
adjusted operating income rose 23 percent to 223 million euros (181 million euros for the same period in 2018)sales return excluding unshared costs rose to 11.0 percent (9.0 percentin the same period in 2018) andrevenue s111.73 billion (EUR 68 million for the same period in 2018); OPI profit margin improved to 7.7% (2.9% for the same period in 2018)cost-savings projects progress, cost savings of EUR 10 million in the fourth quarter
sales fell 3% (if at constant exchange rate, down 4%), pricing/combination contributed 1% and was offset by a 4% decline in sales
Adjusted operating income increased by 23% to EUR 223 million (EUR 181 million for the same period 2018), mainly due to continued growth in pricing strategies, margin management and cost-saving projects, sales returns rose to 9.9 per cent (7.8 per cent in the same period in 2018)operating income was EUR 173 million, including the negative impact of the identified projects, mainly related to transformation costs and non-cash impairments (2011) Operating income for the same period in august was EUR 68 million, including EUR 113 million negative impact from identified projects; OPI profit margin improved to 7.7% (2.9% for the same period in 2018)full-year 2019 results were
flat, pricing/combination contributed 4% to , pricing/combination contributed 4%, acquisition contribution 1%, offset by a 5% decline in sales, mainly due to the implementation of the "value over sales" strategy
Adjusted operating income rose 24% to EUR 991 million (EUR 798 million for the same period 2018), mainly due to the advance of pricing strategies and cost-saving items ; The negative impact of EUR 150 million, mainly related to transformation costs and non-cash impairments, was partially offset by disposal income from asset network optimization projects (operating income for the same period 2018 was EUR 605 million, including euro193 million negative impact on identified projects, mainly related to the transformation costs of EUR 130 million and the one-time non-cash pension of EUR 57 million); Net income from total operations was EUR 539 million, including EUR 22 million from discontinued operations (EUR 6,674 million for the same period in 2018, including EUR 6.264 billion from discontinued operations) final dividend Thierry Vanlanc ker, chief executive of AkzoNobel, at 1.49 euros a share
said "from the full-year 2019 results, we are moving steadily into the transformation plan." Despite the resistance to rising raw material costs and weakening end-user demand, we are making good progress In the second half of 2019, the pace of improvement in our performance accelerated, resulting in a increase of about 200 basis points to 12.5 per cent in return on sales we are steadily delivering on our commitments, and the sale of our specialist chemicals business has generated a return of 6.5 billion euros for shareholders At the same time, we continue to focus on our future development plans Our 50 million euro wood lacquer factory in the United States has been officially launched, completing the acquisition of Mapaero to strengthen our global position in aerospace coatings and expanding our innovation ecosystem through the Coatings for the Future Global Challenge AkzoNobel's success is largely due to the dedication and dedication of our diverse global workforce We will continue to work together to continue to focus on the 'win-win cooperation: 15by20' strategic goal "
AkzoNobel results (MILLIONs of euros) the fourth quarter of 2018
per cent per cent in the fourth quarter of 2019
3 sales 2308
2242 (3%) (4%) adjusted operating income
1
11 81
223
23% return on sales
7.8 per cent 9.9 per cent return on sales (excluding unshared costs) 2
9.0 per cent 11.0 per cent operating income 68
173
154 per cent 1.
Adjusted operating income - operating income minus defined items (previously known as EBIT) 2.
Return on sales (excluding unshared costs) is adjusted operating income to sales (excluding unallocated corporate center costs) 3.
The constant exchange rate calculation does not include the impact of foreign exchange rate fluctuations
the fourth quarter of 2019 highlights
powder paint to help iconic buildings shine
Warsaw's skyscraper under construction, the Warsaw Tower, is about to be completed, which will be the tallest building in Europe AkzoNobel's high-end powder coating system will provide better protection, enabling the Warsaw Tower to shine in the face of bad weather Developed by international workspace provider HBReavis, the Warsaw Tower will be the tallest building in the Polish capital Warsaw when completed The skyscraper's stylish, black atmosphere features the AkzoNobel Interpon D2525 super durable finish on wall panels and profiles, with an eye-catching sandblasting black tone, while the Interpon Redox Plus primer provides super toughness Doles' color collection is available in India
Doles has launched a range of color products in the Indian market, as well as its six special effects coatings, including new marble, metal, flax, silk, ColourMotion and desert effects coatings, enabling consumers to create new designs and styles In addition, Doleshi has also launched the Doleshi Color Touch Ellestoglo Compared to other advanced interior coatings, the product has excellent elasticity, resulting in a threefold increase in the elasticity of the paint film This means that the product can cover thin line cracks and protect walls while providing the perfect look for the walls AkzoNobel brings revolutionary spraying filling to the yacht market
the birth of revolutionary spraying filling technology will give superyacht manufacturers and coating manufacturers a lot of help, and cause dazzling in the industry AwlfairSF is a high-performance filler of the Awlgrip series that can be sprayed with pressurized airlessness without manual spraying This breakthrough innovation not only promotes the popularity of wet-wetting processes, but also means that up to two coats of coatings can be sprayed daily without the need for mid-course grinding AkzoNobel is committed to promoting employee development and has been named the five "Best Employers" and AkzoNobel has been recognized by Top Employers Institute for its outstanding performance in creating the best working environment for its employees AkzoNobel China received the certification in December 2019, followed by other major markets such as Brazil, the United Kingdom, the Netherlands and the United States The company has always adhered to the "people-oriented" business philosophy, in the "best employer" honor to maintain a good record, following the British team for 8 consecutive years, the Chinese team for 7 consecutive years, the Brazilian team won the award for the first time this year, the "Best Employer" award Future Outlook: we are steadily implementing the "Win-Win: 15by20" strategy, transforming companies focused on paints and coatings by creating targeted organizations and helping to achieve our 2020 guidance goals in an uncertain macroeconomic environment, demand trends vary by geography and market segments In the first half of 2020, raw material prices are expected to have a moderately beneficial impact Proactive profit margin management and cost-saving projects are ready to meet today's market challenges we will continue to implement the transformation plan, hoping to save one-time costs and meet the previous target of saving 200 million euros our goal is to achieve a leverage ratio (i.e., net debt/EBITDA ratio) of 1.0-2.0 times by 2020 and to strive to maintain a strong investment credit rating AkzoNobel's full-year and fourth-quarter 2019 results are available for browsing and downloading http://akzo.no/Q42019
this announcement is issued by AkzoNobel in accordance with section 17 of the European Market Abuse Regulations (596/2014), paragraph 1 ---
on AkzoNobel AkzoNobel is committed to building a livable world with high-quality coatings and excellence Since 1792, we have produced coatings and paints that have been passed on to our own art and set standards for color and protection AkzoNobel's brand is well-known, with such well-known brands as Dulux, International, Sikkens and Interpon, and is widely trusted by customers around the world Headquartered in the Netherlands, AkzoNobel has a presence in more than 150 countries and regions and has approximately 34,000 talented employees dedicated to providing high-performance products and services to its customers