AMSTERDAM: AkzoNobel published the Q4 and the full-year 2016 results. The company’s revenue fell by 3% year on year to EUR3.46 billion in the fourth quarter while earnings before interest and taxes (EBIT) were 12% lower at EUR235 million.
AkzoNobel’s net income fell 34% year on year to EUR133 million in the fourth quarter 2016, as restructuring costs and weaker demand from the oil and gas and marine industries.
Revenue down 4% due to unfavorable currency and price/mix effects
EBIT up 3% at EUR1,502 million (2015: EUR1,462 million), positively impacted by volume growth, continuous improvement and lower costs
Record profitability: Return on sales2 increased to 10.6% (2015: 9.8%) and return on investment2 improved to 15.0% (2015: 14.0%)
Adjusted earnings per share up 3% at EUR4.15 (2015: EUR4.02) Total dividend proposed for 2016 up 6.5% to EUR1.65 per share (2015: EUR1.55) Net cash inflow from operating activities up 14% at EUR1,297 million (2015: EUR1,136 million).
Full-year volumes were up 1%, with positive developments, mainly driven by Asia and Europe. Revenue was down 4% with positive volume developments more than offset by price deflation in several markets. Continuing the focus on growth markets, Akzo Nobel inaugurated two new plants in Ningbo, China, and announced a further facility in Tianjin.
The company also announced a joint venture with Atul to set up a monochloroacetic acid plant in India.
