(ICIS) -- AkzoNobel's net income fell by 1.8% in the second quarter because of raw material price inflation, low demand in mature markets and prolonged production outages, the Netherlands-headquartered chemicals major said on Thursday.
Net income decreased to EUR 268 mln (USD 383 mln) from EUR 273 mln in the same period last year. ⌠The results of the first quarter do not satisfy us at all, CEO Hans Wijers said during the company's earnings press conference.
According to AkzoNobel's report for the second quarter of 2011, raw material costs increased by 20%, which had a major impact on the company's three business areas: decorative paints, performance coatings and specialty chemicals.
Wijers said the strong euro against other currencies, volatility in certain end markets - particularly in mature economies - and prolonged production outages have worsened the economic difficulties facing the firm.
As a result, second-quarter earnings before interest, tax, depreciation and amortisation (EBITDA) were down by 10%, to EUR 551m from EUR 614m in the previous year's quarter.