Neil DennisAkzo Nobel, the Dutch industrial and household chemicals group, looked set for a volatile open after reporting third-quarter earnings of €383m (£341.8m) that failed to match market expectations.
The company, which makes Dulux paint, said its results had been "impacted by unfavourable currencies, temporary disruption to the manufacturing and supply chain, continued headwinds for marine and protective coatings and margin pressure from raw materials cost inflation".
But revenues and volumes were higher, and the company announced plans to deliver €110m in cost savings in 2018.
Here's the Q3 highlights:
- Revenue up 1% to €3.6bn, mainly due to volume growth and acquisitions
- Volumes 2% higher driven by Decorative Paints and Performance Coatings
- Earnings before interest and tax fell 15.4% to €383m - direct impact of €25m related to Hurricane Harvey
- Adjusted earnings per share at €1.07 (2016: €1.20)
Outlook
The company said it expected industry specific headwinds to continue, including higher raw material prices and challenges for marine and protective coatings.
"We are implementing various measures to mitigate current market challenges, including increased selling prices and additional cost control," Akzo added.
Chief executive Thierry Vanlancker commented: "“We have continued to grow our business with higher volumes and increased revenues despite challenging market conditions in selected areas of our business, especially in Marine and Protective Coatings.
“We have also initiated phase one of our transformation plan to create a fit for purpose Paints and Coatings organization which will deliver €110 million annual savings in 2018 contributing towards our 2020 financial guidance."