Akzo Nobel Q1 Profit Climbs, Despite Weak Revenues; Warns On Q2 Amid COVID-19

(RTTNews) - Dutch paints and chemicals maker Akzo Nobel N.V. (AKZA.AS; AKZOY) Wednesday reported that its first-quarter net income attributable to shareholders climbed 75 percent to 114 million euros from last year's 65 million euros, despite headwinds from COVID-19.

Earnings per share climbed 111 percent to 0.59 euro from 0.28 euro last year. Adjusted earnings per share from continuing operations was 0.71 euro, compared to 0.46 euro a year ago.

Operating income went up 65 percent to 187 million euros and margin improved to 9.1 percent from 5.2 percent last year.

Revenue, meanwhile, fell 6 percent to 2.06 billion euros from 2.19 billion euros last year. Revenues fell 5 percent in constant currencies3, with positive price/mix of 2 percent more than offset by 7 percent lower volumes, mainly due to the impact of COVID-19.

Looking ahead, AkzoNobel has paused key parts of the company's transformation and suspended its 2020 financial ambition in response to the significant market disruption resulting from the pandemic.

AkzoNobel CEO, Thierry Vanlancker, said, "While things are gradually returning to normal in China, COVID-19 headwinds are increasing for most of the world and will have a significant impact during Q2. Although we've been forced to pause key parts of our transformation and suspend our 2020 financial ambition, we're eager to quickly resume our positive momentum once markets normalize."