Paint and specialty chemicals company Akzo Nobel N.V. (AKZA.AE) on Wednesday reported a 13% drop in third-quarter adjusted earnings before interest and tax, citing industry headwinds and unfavorable foreign-exchange conditions.
The Dutch company, which owns brands including Dulux, Sikkens and Interpon, said that adjusted Ebit, the company's operating income excluding certain items, for the quarter ended Sept. 30 was 383 million euros ($450.6 million) down from EUR442 million in the year earlier period. Revenue rose 1% to EUR3.62 billion.
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The company also reported that net profit dropped to EUR216 million from EUR285 million in the year-earlier period.
The company said that Ebit for 2017 is now expected to be in line with that of 2016, due to adverse foreign-exchange conditions, industry headwinds, and supply chain disruptions that included the adverse impact of Hurricane Harvey in the U.S.
The company said sales volumes were up 2%, driven by decorative paints and performance coatings.
Akzo Nobel said it was implementing various measures to mitigate current market challenges, including increased selling prices and additional cost control, and also said it had started phase one of a transformation plan to deliver EUR110 million annual savings in 2018.
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Corrections & Amplifications
This article was corrected at 1110 GMT because it misstated that the company's revenue and ebit dropped in its third-quarter earnings in the headline. It was only ebit that dropped.
Akzo Nobel Says Drop in 3Q Ebit Due to Industry Headwinds. "Akzo Nobel Says Drop in 3Q Ebit, Revenue Due to Industry Headwinds" at 0747 GMT, misstated that the company's revenue and ebit dropped in its third-quarter earnings in the headline. It was only ebit that dropped.
(END) Dow Jones Newswires
October 18, 2017 07:21 ET (11:21 GMT)