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AkzoNobel shares up on raised forecast

Dutch paints and chemicals firm hit by fragile consumer demand and weak housing markets in the US and Europe

Interior painted with Dulux colours: Dulux paint brand has also been affected by the high costs of raw materials, such as titanium dioxide, a pigment used in paint

Mon Oct 21 2013 - 19:40

Better-than-expected quarterly operating profits at AkzoNobel caused optimism yesterday that the Dutch paints and chemicals firm will beat its forecast of flat 2013 earnings, and the share jumped 9 per cent to be the biggest European gainer.

The results of the owner of the Dulux paint brand over recent quarters have been hit by fragile consumer demand and weak housing markets in the US and Europe. It has also been affected by the high costs of raw materials, such as titanium dioxide, a pigment used in paint.

But third-quarter operating income excluding impairments was €303 million, beating analysts forecasts and rising 22 per cent from a year ago thanks to lower restructuring costs and higher volumes. AkzoNobel said full-year operating income before incidental items is unlikely to exceed last year’s level of €908 million. – (Reuters)

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