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EBITDA


EBITDA was up 16 percent for the year and 3 percent for Q4, where the positive currency impact was 8 percent and 10 percent respectively. During the second half of the year we have been impacted by higher raw material costs, which we have partly offset by pricing.

  • In Decorative Paints, we continued to invest in the future of the business, with absolute A&P spending increased by 30 percent and A&P spending as a percentage of revenue increasing to 6 percent (2009: 5 percent). During the year, we maintained our focus on costs, margin improvement and operating working capital efficiency. We continued the restructuring programs in our European business to counter soft market demand, while our margin management programs enabled us to maintain overall margins, despite higher raw material prices. EBITDA was up 13 percent for the year and down 10 percent for Q4, where the positive currency impact was 7 percent and 10 percent respectively. The EBITDA margin improved from 10.6 percent in 2009 to 11.0 percent in 2010. Q4 EBITDA was below last year due to weak performance in Continental Europe.
  • Full-year EBITDA in Performance Coatings increased 9 percent, where the positive currency impact was 7 percent, and ended at €647 million. The EBITDA margin was 13.5 percent (2009: 14.4 percent). Q4 showed a similar trend as Q3, with improved activity levels in all businesses. Costs were kept under control, however, margins were impacted by higher raw material prices. As a result, EBITDA in the quarter was down 5 percent (positive currency impact 7 percent) to €147 million (€154 million in 2009).
  • In Specialty Chemicals, improved volume, firm margins and limited cost growth resulted in an EBITDA growth of 27 percent to €939 million for 2010 (in constant currencies 20 percent), surpassing all previous performance levels for the portfolio. With the National Starch divestment having been completed and our Ningbo site in China operational, the business area was even better positioned at the close of the year. While Q4 EBITDA was €221 million, 17 percent above the strong comparative of last year (in constant currencies 9 percent), margins in the quarter were slightly lower at 17.6 percent. Industrial Chemicals did not book any major result from secondary use of caverns and Surface Chemistry was impacted by shortages in raw materials in their personal care business.

While Q4 EBITDA was €221 million, 17 percent above the strong comparative of last year (in constant currencies 9 percent), margins in the quarter were slightly lower at 17.6 percent. Industrial Chemicals did not book any major result from secondary use of caverns and Surface Chemistry was impacted by shortages in raw materials in their personal care business.

4TH QUARTER

 

 

IN € MILLIONS

JANUARY - DECEMBER

 

2010

2009

Δ%

 

 

2010

2009

Δ%

 

 

 

 

 

 

 

 

63

70

(10)

 

Decorative Paints

548

487

13

147

154

(5)

 

Performance Coatings

647

594

9

221

189

17

 

Specialty Chemicals

939

738

27

(54)

(46)

 

 

Other activities/eliminations

(170)

(129)

 

 

 

 

 

 

 

 

 

377

367

3

 

Total

1,964

1,690

16

Copyright © 2011 Akzo Nobel N.V.