Specialty Chemicals

Full-year:

  • Volumes up 1%, mainly driven by Asia and Europe, partly offset by lower demand in the oil related segments
  • Revenue down 4% with positive volume developments more than offset by price deflation in several markets
  • EBIT up 9% at €629 million due to improved volumes and operational efficiencies
  • ROS increased to 13.2% (2015: 11.6%); ROI increased to 17.9% (2015: 16.3%)

Full-year:

Volumes were up 1%, mainly driven by Asia and Europe, partly offset by lower demand in the oil related segments. Revenue was down 4% with positive volume developments more than offset by price deflation in several markets.

EBIT increased 9% due to improved volumes and operational efficiencies.

Q4:

Volumes were up 4%, mainly driven by Asia and Europe and improved manufacturing availability. Demand in oil related segments bottomed out. Revenue was flat with increased volume offset by adverse price/mix effects.

EBIT increased by 31% as a result of improved volumes and operational efficiencies.

Revenue

Fourth quarter

 

January-December

2015

2016

∆%

in € millions

2015

2016

∆%

*

ROS% = EBIT/Revenue. Moving average ROI (in %) = 12 months EBIT/12 months average invested capital

408

413

1

Functional Chemicals

1,822

1,718

(6)

308

296

(4)

Industrial Chemicals

1,204

1,202

236

244

3

Surface Chemistry

1,060

1,030

(3)

231

238

3

Pulp and Performance Chemicals

989

921

(7)

(16)

(22)

 

Other/intragroup eliminations

(87)

(88)

 

1,167

1,169

Total

4,988

4,783

(4)

 

 

 

 

 

 

 

90

118

31

EBIT

578

629

9

91

118

30

Operating income

609

629

3

7.7

10.1

 

ROS% *

11.6

13.2

 

 

 

 

 

 

 

 

 

 

 

Average invested capital

3,540

3,507

 

 

 

 

Moving average ROI (in %) *

16.3

17.9

 

 

 

 

 

 

 

 

130

128

 

Capital expenditures

331

356

 

 

 

 

Number of employees

9,100

9,000

 

Revenue development full-year 2016

AkzoNobel – Operating working capital (bar chart)AkzoNobel – Operating working capital (bar chart)

Revenue development Q4 2016

Functional Chemicals

Positive volume development for the full-year, especially in Asia, was offset by adverse currency effects and price deflation. Revenue was down 6%.

In Q4, revenue was up 1%, due to improved volumes in Asia, partly offset by price deflation and adverse currency effects. The previous year was impacted by severe logistical constraints caused by the incident at the port of Tianjin.

Industrial Chemicals

Volumes improved for the full-year due to increased demand and higher supply chain availability in Frankfurt and Rotterdam. Revenue was flat with volume growth offset by adverse price/mix effects.

In Q4, improved volumes were more than offset by unfavorable price/mix effects. Revenue was down 4%.

Surface Chemistry

Volumes were up for the full-year, with lower demand in the oil related segments more than offset by volume growth in other segments. Revenue was down 3% due to positive volume effects being more than offset by price deflation in oil related segments and adverse currencies.

In Q4, revenue was up 3% due to strong volumes. Demand in oil related segments bottomed out, while price deflation remained.

Pulp and Performance Chemicals

Demand trends differed per segment and region. Full-year revenue was flat, excluding the impact of the divested Paper Chemicals business in 2015.

In Q4, revenue was up 3%, mainly due to improved price/mix.

Investing in key growth markets
AkzoNobel has inaugurated two new Specialty Chemicals plants at its multi-site in Ningbo, China, which together represent a combined investment of €80 million.