Specialty Chemicals (reported as discontinued operations)

  • Revenue down 3% (up 4% excluding currency impact) due to positive price/mix effects more than offset by adverse currencies and lower volumes
  • Volumes down 1%, with lower volumes in some segments being partly offset by volume growth in Pulp and Performance Chemicals
  • Adjusted operating income at €150 million (2017: €166 million); restructuring costs related to manufacturing network optimization projects and adverse currencies, partly offset by stronger price/mix effects and productivity improvements
  • ROS at 12.0% (2017: 12.9%): ROI at 16.5% (2017: 15.6%)
Bouwdokken wind park in the Netherlands (Photo)

Partnering for a sustainable future
AkzoNobel Specialty Chemicals has received its first electricity from the Bouwdokken wind park in the Netherlands. The milestone achievement is the result of a unique green energy purchasing consortium which also includes DSM, Google and Philips. By working together, the four companies are making a significant contribution to delivering on the Netherlands’ renewable energy target of 14% by 2020.

Revenue was 3% lower (up 4% excluding currency impact) with positive pricing impact more than offset by adverse currencies and lower volumes. Industrial Chemicals benefited from strong pricing.

Adjusted operating income was lower, mainly due to the impact of restructuring costs of €32 million related to manufacturing network optimization projects and adverse currencies, partly offset by stronger price/mix effects and productivity improvements.

Revenue

First quarter

 

 

 

 

in € millions

2017 1

2018

∆%

∆% CC 2

1

Represented to present Specialty Chemicals business as discontinued operations

2

Change excluding currency impact

Functional Chemicals

473

459

(3)

5

Industrial Chemicals

317

351

11

12

Surface Chemistry

284

250

(12)

(2)

Pulp and Performance Chemicals

240

217

(10)

(1)

Other/intragroup eliminations

(25)

(25)

 

 

Total

1,289

1,252

(3)

4

Revenue development Q1 2018

Specialty Chemicals – Revenue development Q1 2018 (bar chart)Specialty Chemicals – Revenue development Q1 2018 (bar chart)
Key financial figures

First quarter

 

 

 

in € millions

2017 1

2018

∆%

1

Represented to present Specialty Chemicals business as discontinued operations

2

2017 figures include allocations from Other activities

Adjusted operating income 2

166

150

(10)

Operating income 2

166

150

(10)

ROS%

12.9

12.0

 

 

 

 

 

Average invested capital

3,663

3,583

 

ROI%

15.6

16.5

 

Functional Chemicals

Revenue was 5% higher excluding adverse currency effects. Lower volumes were more than offset by strong price/mix. Volumes were down 1% with strong volumes in Polymer Chemistry not fully compensating the lower volumes in Ethylene and Sulfur Derivatives.

Industrial Chemicals

Revenue was 12% higher excluding adverse currency effects due to strong price/mix effects, driven by the tight global demand and supply balance in the caustic soda market. Volumes were down 1% due to some smaller supply chain disruptions in the chlor-alkali plants.

Surface Chemistry

Revenue was lower mainly due to adverse currencies and lower volumes, partly offset by stronger price/mix.

Pulp and Performance Chemicals

Revenue was lower mainly due to adverse currencies. Volumes were up 5% due to continued strong demand for bleaching chemicals in Brazil and performance products.