Specialty Chemicals

Half-year:

  • Volumes up 4% with growth in most business units and all regions
  • Revenue up 6% due to higher volumes and positive currency and price/mix effects
  • EBIT and operating income up 3% mainly due to the higher volumes
  • ROS at 13.9% (2016: 14.2%); ROI at 18.0% (2016: 17.1%)

Q2:

  • Volumes up 2% with growth in all business units, except for Industrial Chemicals, and all regions
  • Revenue up 4% due to higher volumes and positive price/mix effects
  • EBIT and operating income flat as favorable volume and price/mix developments were offset by the impact of a planned maintenance turnaround in Industrial Chemicals
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Half year:

Revenue was up 6%, with growth in all business units and regions. Several of our businesses benefited from improved market conditions in the oil drilling, agrochemicals and building and construction segments. Strong growth in China was driven by the new organic peroxides plant in Ningbo and plant closures at competitors driven by an increased focus on implementation of health, safety and environmental standards.

EBIT increased by 3% as a result of higher volumes, which were partly offset by raw material price increases not being fully recaptured yet through increased selling prices, and the impact of a planned maintenance turnaround in Industrial Chemicals. ROS would have been higher than 2016 excluding the impact of a planned maintenance turnaround in Industrial Chemicals.

Q2:

Revenue was up 4%, due to higher volumes in most business units and all regions, as well as positive price/mix effects. Volumes were up 2% with growth in all business units (except for Industrial Chemicals), and all regions, particularly the Americas and Asia. In Europe, volume growth was limited due to a planned maintenance turnaround in Industrial Chemicals. Positive price/mix reflects the successful pass through of raw material price inflation.

EBIT was flat as strong volume developments in several business units and positive price/mix effects were offset by the impact of a planned maintenance turnaround in Industrial Chemicals, which impacted EBIT by around €13 million.

Revenue

Second quarter

 

January-June

2016

2017

∆%

in € millions

2016

2017

∆%

*

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

445

469

5

Functional Chemicals

881

942

7

293

302

3

Industrial Chemicals

592

619

5

266

282

6

Surface Chemistry

524

566

8

223

230

3

Pulp and Performance Chemicals

457

470

3

(21)

(24)

 

Other/intragroup eliminations

(42)

(49)

 

1,206

1,259

4

Total

2,412

2,548

6

 

 

 

 

 

 

 

179

179

EBIT

343

355

3

179

179

Operating income

343

355

3

14.8

14.2

 

ROS% *

14.2

13.9

 

 

 

 

 

 

 

 

 

 

 

Average invested capital

3,477

3,572

 

 

 

 

Moving average ROI (in %) *

17.1

18.0

 

 

 

 

 

 

 

 

84

89

 

Capital expenditures

147

164

 

 

 

 

Number of employees

9,000

9,200

 

Revenue development half-year 2017

Specialty Chemicals – Revenue development half-year 2017 (bar chart)Specialty Chemicals – Revenue development half-year 2017 (bar chart)

Revenue development Q2 2017

Specialty Chemicals – Revenue development Q2 2017 (bar chart)Specialty Chemicals – Revenue development Q2 2017 (bar chart)

Functional Chemicals

Revenue was up 7%. Positive volume developments in Asia contributed most with volumes at our Ningbo site significantly higher, driven by the start-up of the new DCP facility and strong volume growth for the other production units at the site.

In Q2, revenue was up 5% driven by higher volumes. Revenue increased in all regions, especially in Asia.

Industrial Chemicals

Revenue was up 5% due to positive price/mix. Demand and supply for caustic and chlorine is now more balanced, driven by competitors phasing out mercury-based production due to the new regulations coming into effect by the end of the year.

In Q2, revenue was up 3%. Positive price/mix was partly offset by lower volumes due to a planned maintenance turnaround.

Surface Chemistry

Revenue was up 8% driven by strong volume development and favorable currency effect.

In Q2, revenue was up 6%, mainly due to positive volume developments. The oil drilling segment delivered strong growth, driven by the oil price development and positive developments at shale producers in North America. The agrochemicals segment continued to show significant improvement.

Pulp and Performance Chemicals

Revenue for the half-year and Q2 was up 3% driven by strong volume growth in the Expancel and Levasil product lines and a gradual improvement of bleaching chemicals throughout the first half of the year.