AkzoNobel profits slide as Dulux maker counts cost of Hurricane Harvey

 
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Dulux Dog Drunk
Dulux maker AkzoNobel has had a ruff year (Source: Getty)

Dutch chemicals giant AkzoNobel said today that it expects underlying earnings for the full year to be flat on last year's total, after profits dropped in the third quarter.

Shares were down 1.6 per cent today to €77.09.

The figures

The maker of Dulux paint reported that underlying earnings for the third quarter had dropped to €383m (£340m) compared to €442m this time last year.

Volumes grew two per cent, helping boost revenue by one per cent to €3.62m.

Read more: Dulux dog "alive and kicking": AkzoNobel chief plays down Brexit concerns

Why it's interesting

Among other factors, Hurricane Harvey was cited as a one-off cost to its bottom line, wiping €25m off underlying earnings as the natural disaster disrupted the supply chain.

There was also margin pressure from cost inflation in raw materials to contend with, and the company noted "headwinds" in its marine coatings business.

But the company said it was initiating a new plan to deliver €110m in cost savings next year through the creation of a paints and coatings business that is "fit for purpose".

It is also looking towards the "separation process" of its specialty chemicals business, for which several buyers have expressed interest.

What AkzoNobel said

Chief executive Thierry Vanlancker said: "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."

Read more: Dulux owner AkzoNobel warns earnings will fall below expectations

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