Specialty Chemicals

  • Revenue up 7% with positive volume developments and favorable currency impact
  • Volumes up 5% with growth in all business units and regions
  • EBIT up 7% at €176 million, mostly due to improved volumes and operational efficiencies
  • ROS increased to 13.7% (2016: 13.6%); ROI increased to 18.1% (2016: 16.5%)
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Revenue was up 7% due to positive volume developments in all business units and regions and favorable currency effects. Volumes were up 5%. Several of our businesses benefited from improved market conditions in the oil drilling, mining, agrochemicals and building and construction segments. China delivered significant growth, driven by the start-up of our new organic peroxides facility in Ningbo and plant closures at competitors, driven by an increased government focus on implementation of health, safety and environmental standards.

EBIT increased by 7%, mainly due to improved volumes and operational efficiencies, partly offset by raw material price increases which were not yet fully recaptured through increased selling prices.

Revenue

First quarter

 

 

 

in € millions

2016

2017

∆%

*

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

Functional Chemicals

436

473

8

Industrial Chemicals

299

317

6

Surface Chemistry

258

284

10

Pulp and Performance Chemicals

234

240

3

Other/intragroup eliminations

(21)

(25)

 

Total

1,206

1,289

7

 

 

 

 

EBIT

164

176

7

Operating income

164

176

7

ROS% *

13.6

13.7

 

 

 

 

 

Average invested capital

3,500

3,546

 

Moving average ROI (in %) *

16.5

18.1

 

 

 

 

 

Capital expenditures

63

75

 

Number of employees

9,100

9,100

 

Revenue development Q1 2017

Specialty Chemicals – Revenue development Q1 2017 (bar chart)Specialty Chemicals – Revenue development Q1 2017 (bar chart)

Functional Chemicals

Positive volume development, especially in Asia and Europe, contributed most to the revenue increase of 8%. In China, the new organic peroxides plant in Ningbo enabled strong volume growth. In addition, the building and construction and agrochemicals segments experienced strong growth.

Industrial Chemicals

Revenue was up 6%, mainly due to strong volumes and improved pricing. For caustic and chloromethanes in particular, the market supply and demand is more balanced, driven by, among others, competitors phasing out their mercury-based production due to the new regulations coming into effect by the end of the year.

Surface Chemistry

Revenue was up 10%, mainly due to positive volume developments and favorable currencies. Demand in oil drilling showed a significant recovery, driven by positive developments in North America. The agro-chemicals segment experienced significant improvement, driven by Latin America.

Pulp and Performance Chemicals

Revenue was up 3%, driven by stronger bleaching chemicals volumes in Latin America and strong growth in our Expancel and colloidal silica product lines.