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Wood Finishes and Adhesives

Revenue for Wood Finishes and Adhesives decreased by 5 percent compared to last year, affected by lower volumes and negative currency and offset by prices. The softer volume levels are driven primarily by the US housing crisis, which impacts our businesses in the Americas and exports from Asia. Demand in our European business has improved over the previous year, but the results have been mixed by country. Market demand for wood finishes is expected to remain well below pre-recessionary levels until the housing markets show some sign of improvement. Operating costs were below last year due to restructuring activities in markets, which experienced lower than expected demand levels. In May we announced the discontinuation of board resin production in Stockvik, Sweden, and the transfer of production to our facility in Kristinehamn, Sweden, to gain manufacturing synergies. In early July we announced the restructuring of our Wood Coatings Europe business into a more strategic market-focused organization which impacted the sales, manufacturing, and logistics organizations. The impact of raw material price increases is visible in all segments.

Copyright © 2011 Akzo Nobel N.V.