MRC -- AkzoNobel's net income surged to €189m in the third quarter, supported by a rebound in gross margins in both its core decorative paints and performance coatings businesses, said the company.
Q3 revenue 4% down on unfavorable exchange rates. Decorative paints Q3 revenue down 3%, operating income up by 53%. Performance coatings Q3 revenue down 5%, operating income more than doubles to €245m from €98m in the same period of last year.
Based on current market conditions, AkzoNobel aims to deliver around €1.45bn in adjusted EBITDA this year. "AkzoNobel expects the ongoing macro-economic uncertainties to continue and weigh on organic volume growth. The company will focus on margin management, cost reduction, working capital normalisation and de-leveraging," it said.
Cost reduction programs are expected to partly mitigate higher than expected inflationary pressure on operating expenses for this year. The company expects declining raw material costs to have a favorable impact on profitability.
We remind, AkzoNobel has completed the acquisition of the Chinese decorative paints business of US-based Sherwin-Williams for an undisclosed fee. The transaction includes the Huarun decorative paints brand, the company said in a statement. The business has an annual revenue of about €100m and employs around 300 people.