AkzoNobel: first-quarter operating profit beats

(CercleFinance.com) - Dutch paint maker Akzo Nobel reported better-than-expected first-quarter operating profit on Wednesday, despite headwinds from the Covid-19 pandemic.


Adjusted operating income rose by 31% to 214 million euros, from 163 million euros in the first three months of 2019, the group said.

The company attributed this growth in profit to transformation and other savings, which cut costs by 44 million euros relative to the first quarter of 2019.

With a positive price/mix effect of 2%, its margin also improved, rising to 9.1% from 5.2%, despite a 7% fall in volumes, it said.

AkzoNobel said that it has decided to "pause" key parts of its transformation and suspended its 2020 financial guidance due to the market disruption resulting from the pandemic.

Headwinds are increasing in most parts of the world and this will have a "significant" impact in the second quarter, it added.

In the meantime, the better-than-expected results helped spur an 8% rise in Akzo shares in morning trade.

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