AkzoNobel NV reported a Q2 with positive developments in profitability of all three business areas despite a challenging market environment.
Q2 operating income increased 38% to €486M, reflecting the positive effects of efficiency programmes, lower costs, reduced restructuring expenses, divestment results and favourable currency rates. Revenue of €3949M was up 6% yr-on-yr due to favourable currency rates, offset by divestments and lower volumes in some areas. The divestment of Paper Chemicals was completed in line with the strategy of pruning the portfolio. The triennial review with the trustees of the ICI Pension Fund (UK) was completed in July 2015.
Market trends in North America continued to be positive with Europe not improving. Conditions remained challenging in many countries, including in China, Brazil and Russia. Return on sales improved to 12.3% and return on investments was up at 11.7%. AkzoNobel remains on track to deliver its 2015 targets.
