Amsterdam, the Netherlands, January 31, 2008 – Akzo Nobel N.V. (Akzo Nobel) has released a trading update following the completion of the acquisition of Imperial Chemical Industries (ICI) and ahead of announcing its full year results on March 6, 2008.
The growth momentum of the preceding quarters continued in the fourth quarter, as reflected in the ongoing improved operational performance. Consequently, full year revenues for Akzo Nobel (excluding the acquisition of ICI) are EUR 10,217 million, 2% ahead of 2006 with an autonomous growth (volume and price) of 5%.
Akzo Nobel CEO Hans Wijers said: “The first nine months of 2007 laid the foundations for what was a solid final quarter. Indeed, both Akzo Nobel and ICI produced good fourth quarter results, which contributed to strong full year revenues and reflected continuing growth trends.”
Following the completion of the ICI acquisition on January 2, 2008, integration is now underway. “We have established good momentum with our integration plans and I am pleased with progress so far and with the spirit, enthusiasm and focus that the respective teams are demonstrating” continued Hans Wijers.
Revenues for the fourth quarter of 2007 totaled EUR 2,431 million, up 2% with autonomous growth of 6%. A breakdown of the revenues development for Akzo Nobel, Coatings and Chemicals is presented in a table at the end of this press release.
Preliminary full year 2007 revenues for all ICI businesses were GBP 4,899 million, 1% ahead of 2006, reflecting autonomous growth of 5%. In the fourth quarter the business delivered continued strong underlying sales growth compared with the same period in 2006, with autonomous growth up 6% to GBP 1,236 million.
Fourth quarter 2007 revenues of Akzo Nobel’s decorative coatings business were unchanged, but bottom line performance significantly improved due to a better product mix.
Results from ICI’s decorative business increased substantially during the last quarter of 2007, particularly in North America compared with the fourth quarter in 2006.
Akzo Nobel’s Pulp & Paper business also realized a strong last quarter of 2007. Increased revenues of 9% contributed to a robust improvement of the bottom line.
With regard to the analyst consensus for the full year 2007 EBIT figure before incidentals, Akzo Nobel is comfortable with the median forecast of EUR 897 million. The details of the consensus forecasts can be found on the company’s corporate website. For ICI, no up-to-date consensus data is available.
Full Year 2007 results and calendar quarterly results
The full year financial results for 2007 will be published on March 6, 2008, and will contain separate figures for Akzo Nobel and ICI as well as the preliminary results of the purchase price allocation for the acquisition of ICI. In addition, there will be a pro-forma combined company statement of income, balance sheet and key cash flow figures.
In early April 2008, Akzo Nobel will provide quarterly pro-forma statements of income and financials per business area for 2007.
The company will report its quarterly 2008 results on the following dates:
- March 6: Q4 2007 and FYR 2007
- May 7: Q1 2008
- July 29: Q2 2008
- October 29: Q3 2008
Breakdown of the full year 2007 and Q4 2007 Akzo Nobel change in revenues compared with 2006 Akzo Nobel revenues.
Year 2007 Price Volume Currency M&A Total
Coatings + 2% + 2% - 2% +3% + 5%
Chemicals + 4% + 3% -2% -2% + 3%
Akzo Nobel +3 % + 2% - 2% -1% + 2%
Q4 2007 Price Volume Currency M&A Total
Coatings - + 3% - 2% +1% + 2%
Chemicals + 6% + 6% -4% -1% + 7%
Akzo Nobel + 2% + 4% - 3% -1% + 2%
The provisional figures mentioned in this press release are unaudited.