|
Place de cotation: AMSTERDAM
STOCK EXCHANGE EURONEXT
BRUSSELS PARIS
Akzo Nobel is active in three
business areas: Pharma, Coatings and Chemicals.
Headquartered in the Netherlands,
the company has activities in more than 80 countries and employs approximately
64,500 people.Our Pharma group manufactures products for both the human
and animal healthcare markets.Products developed by the Pharma businesses
include oral contraceptives, antidepressants, infertility treatments and
veterinary vaccines.We are the world’s leading coatings company. The brands
we manufacture include Sikkens®, International®, Crown® and
Interpon®.
Our coatings products were
used on London’s Millennium Wheel, La Scala Opera House in Milan, the Öresund
Bridge between Denmark and Sweden and Stadium Australia in Sydney. Akzo
Nobel is also one of the world’s leading chemicals producers. We are the
world’s leading salt specialists and produce chemicals found in everyday
items such as ice cream, toothpaste, bakery goods, cosmetics, plastics
and glass.
Akzo Nobel, dont le siège
social est situé aux Pays-Bas, fournit à ses clients du monde
entier des produits de santé, des peintures et des produits chimiques.
L'effectif actuel d'Akzo Nobel compte environ 67.000 personnes réparties
dans près de 80 pays.
En 2001, son chiffre d'affaires
consolidé s'est élevé à 14 milliards d'Euros
(USD 13 milliards, GBP 8,5 milliards).Les différentes activités
sont menées par des unités d'exploitation, placées
sous l'autorité directe du Conseil de Direction.Dans plusieurs pays,
des organisations nationales ou des bureaux de représentation coordonnent
les activités locales
Organon – continued strong
growth, increasing pipeline and marketing expenditures
Intervet – record quarterly
sales, steady profitable growth
Coatings – excellent growth,
sharp EBIT margin increase
Chemicals – strong start
to the year, progress on divestments
Strong financial position
Arnhem, the Netherlands,
April 20, 2006 – Akzo Nobel (Euronext Amsterdam: AKZ; Nasdaq: AKZOY) today
reported substantially higher revenues and operational earnings for the
first quarter of 2006, driven by a strong start to the year in all businesses,
particularly Coatings.
Net income was down 13%
to EUR 249 million compared with the same period last year due to incidentals.
Excluding incidentals, net income rose 39% from EUR 155 million to EUR
215 million.
Commenting on the company’s
performance, CFO Rob Frohn said: “Our first quarter performance was very
strong as we continued to deliver on growth. All units contributed to the
12% increase in revenues, with continued top line growth at Organon, record
sales at Intervet, excellent Coatings volumes and a strong start to the
year at Chemicals.”
He added that operational
earnings excluding incidentals grew 21%, driven by strong margin recovery
at Coatings and a robust profit performance at Intervet and Chemicals.
Organon’s operating income, excluding incidentals, was slightly lower due
to significantly increased pipeline and marketing expenditures to support
future growth.
“Coatings performed particularly
well during the quarter with the industrial activities achieving substantial
earnings growth and considerably improved margins,” continued Frohn. “In
April we announced an offer for Sico Inc, Canada's leading coatings company,
to further strengthen our global leadership in Coatings.
“Chemicals earnings improved
in spite of increasing energy prices. Coupled with Intervet’s record quarterly
performance and continued strong growth at Organon, it’s been a great start
to the year. Assuming current economic conditions continue, I expect this
positive trend will be maintained.”
First quarter revenues for
2006 increased 12% to EUR 3.4 billion, on autonomous growth of 8% and 4%
favorable currency effects. Operating income excluding incidentals increased
21% to EUR 332 million, representing a 9.8% margin compared with 9.0% in
the same period last year. Both operating income (EUR 375 million, down
11%) and net income (EUR 249 million, down 13%) including incidentals were
below the first quarter last year, as net incidentals gains were lower.
These incidentals – restructuring
and impairment charges (EUR 42 million), costs relating to environmental
and antitrust cases (EUR 43 million), and divestment gains (EUR 128 million)
– resulted in a net gain of EUR 43 million in this quarter. This figure
compares with a EUR 145 million net gain in Q1 2005, resulting mainly from
the special benefit for the termination of the Risperdal® co-promotion.
Earnings per share were EUR 0.87 compared with EUR 1.00 in the prior period.
Annual
Results: 2005 Net Income Improves
Main highlights
Net income up at EUR 961
million Growth in all units—revenues from present operations up 6% Organon—returning
to growth, investing in future product sales and pipeline Intervet—excellent
growth Coatings—picked up in second half after challenging start Chemicals—strong
performance following successful portfolio realignment Positive contribution
from incidentals Dividend maintained—EUR 1.20
Arnhem, the Netherlands,
February 7, 2006 — Akzo Nobel (Euronext Amsterdam: AKZ; NASDAQ: AKZOY)
today reported net income of EUR 961 million for the full-year 2005, slightly
ahead of the 2004 figure of EUR 945 million. Effective implementation of
the company’s global strategy is driving growth in all units, with revenues
from present operations up 6%.
Commenting on the company’s
financial performance, CEO Hans Wijers said: “Our strategy is effectively
overcoming challenges and driving positive developments throughout Akzo
Nobel’s businesses. The company is in a strong financial position and we
are well positioned for investments in growth.
“Organon achieved its major
objective for 2005 with a return to topline growth, while Intervet had
an excellent year as good revenue growth and lower costs contributed to
a strong double-digit profit increase. After a tough start to the year,
Coatings recovered well in the second half, boosted by successful price
increases and rapid growth, particularly in the emerging markets. The benefits
of the portfolio realignment at Chemicals were also clearly evident as
our focused activities improved revenues and profits.”
The 2005 figures show that
total EBIT for the year decreased 3% to EUR 1,486 million. The company’s
R&D expenses were EUR 834 million, which is 6.4% of sales, up 2% from
last year.
Organon—return to topline
growth
Organon’s return to topline
growth signaled an achievement of its major 2005 objective. The business
ended 2005 with positive trends across most treatment areas driving a 3%
increase in revenues to EUR 2,425 million for the year. Sales of contraceptive
vaginal ring NuvaRing® grew autonomously 58% in 2005, while fertility
treatment Puregon® /Follistim® became Organon’s biggest selling
product with sales rising 24% to EUR 355 million. Organon’s EBIT increased
51% to EUR 415 million, representing a 17.1% margin for the year. This
included the receipt of major special benefits, partly offset by settlements
and impairment charges. Organon’s fourth quarterly results were impacted
by relatively high R&D and sales and marketing expenses.
Intervet—excellent growth
Intervet produced strong
results in 2005 with revenues increasing by 7% to EUR 1,094 million. The
business’ performance was boosted by efficiency improvements in manufacturing,
supply chain, and marketing, resulting in an EBIT of EUR 238 million, up
29% from 2004 and equivalent to an operating margin of 21.8%. Intervet
expanded its strong market position in Europe, while in North America,
sales were buoyed by new product introductions in the companion animal
sector. Business is also growing in Asia, where large areas have been severely
affected by outbreaks of avian influenza.
The development of human
influenza vaccines by biotech unit Nobilon, in cooperation with Intervet
and Organon, is progressing on schedule.
Coatings—good recovery after
challenging start
Coatings revenues grew by
6% in 2005 as the business achieved 5% average price increases for the
year. Growth was mainly fueled by expansion in the emerging markets of
Asia Pacific, Eastern Europe, and the Middle East. The company continued
to improve its portfolio through selective acquisitions. Operating income
declined 5% in 2005 to EUR 384 million, mainly due to steeply rising raw
material prices and difficult economic conditions in mature markets, especially
in Western Europe. These were offset in the second half of the year by
price increases, cost measures, and growth initiatives. At the end of 2005,
emerging markets represented 34% of worldwide sales. |