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EBITDA


EBITDA was up 10 percent on the back of a strong revenue development. All businesses were impacted by higher raw material costs, which we have partly offset by pricing. We maintained our focus on costs and margin management.

  • In Decorative Paints, we continued to invest in the future of the business. Absolute A&P spending increased by 17 percent and amounted to 5 percent of revenue (in line with the previous year). Our margin management programs enabled us to maintain overall margins despite higher raw material prices. EBITDA was up 10 percent for the quarter, where the positive currency impact was 4 percent. The EBITDA margin in Q1 was in line with the normal seasonal pattern and is stable compared with the previous year.
  • In Performance Coatings, raw material price increases have had a negative impact on margins. Margin management programs and restructuring efforts in mature markets are ongoing and continue to support performance. Investments in growth plans continue. EBITDA remained flat compared with the previous year, supported by a positive currency effect of 3 percent, and ended at €143 million, with an EBITDA margin of 11.6 percent (2010: 13.6 percent).
  • The focus within Specialty Chemicals remains on market share, margin management and unit margin development across our businesses. Cost containment actions remain in place and thus the conversion of incremental margin to EBITDA in Specialty Chemicals remains strong. As a result, EBITDA was €241 million, 16 percent above last year, including a 4 percent positive currency impact. EBITDA margin remains at a healthy 17.8 percent.

in € millions

1st quarter

 

 

 

2010

2011

Δ%

Decorative Paints

82

90

10

Performance Coatings

143

143

Specialty Chemicals

207

241

16

Other activities/eliminations

(33)

(37)

 

Total

399

437

10

Copyright © 2011 Akzo Nobel N.V.