AMSTERDAM — AkzoNobel gave a strong showing in its fiscal third quarter, ended Sept. 30, despite a dip in revenues.
Revenue drop 5% year over year, at €2.28 billion, but was up 1% in constant currencies. Operating income was €326 million for the quarter, up 32% over last year’s €247 million, and net income rose nearly 36% to €220 million in Q3.
In addition to a growth in volumes for the quarter (up 3%), total cost savings delivered €49 million, and net cash from operating activities improved 46% to €457 million, maintaining a strong balance sheet for the company.
“We delivered an excellent performance for the third quarter, with revenue growth in constant currencies and business return on sales up at 17.7% driven by strong discipline on margins and cost savings,” said Thierry Vanlancker, AkzoNobel CEO, adding, “Although the macro-economic environment remains uncertain, we’re continuing to build on our solid position as a frontrunner in our industry.”
AkzoNobel said it has suspended its 2020 financial ambition in response to the significant market disruption resulting from the pandemic. It noted that raw material costs are expected to have a favorable impact on the fourth quarter and that continued margin management and cost savings address the current challenges.
|Earnings per share are fully diluted, and all figures in parentheses are losses or declines.|
|Quarter ended 9/30||2020||2019||% change|
|Earnings per share||1.30||0.97||34.0%|
a. In euros.