* Says FY operating income unlikely to exceed 908 mln euros
* Q3 revenue falls 5 pct to 3.78 bln euros
* Q3 EBITDA rises 6.5 pct to 456 mln euros
* Shares jump more than 9 pct
AMSTERDAM, Oct 21 Better-than-expected quarterly
operating profits at AkzoNobel caused optimism on
Monday the Dutch paints and chemicals firm will beat its
forecast of flat 2013 earnings, and the share jumped 9 percent
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 United States 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 euros ($415 million), beating the forecast of 289
million euros in a poll commissioned by Reuters and rising 22
percent from a year ago thanks to lower restructuring costs and
AkzoNobel reiterated that full-year operating income before
incidental items is unlikely to exceed last year's level of 908
"The trading environment behind these results has not
changed in that demand remains soft and on a comparative basis
Q3 last year was particularly weak," Chief Financial Officer,
Keith Nichols, said in a statement.
But some analysts said the outlook might be better.
"We consider this (the forecast) as rather cautious," said
ING analyst Filip De Pauw.
AkzoNobel has already reported 842 million euros in
operating income in the first nine months and revised down its
full-year guidance on restructuring charges by 25 million euros
to 300 million euros, he added.
AkzoNobel said it expected to incur about 160 million euros
in restructuring charges in the fourth quarter, leading to the
full-year restructuring charge figure of about 300 million.
By 1127 GMT, Akzo shares were up 8.39 percent while the
FTSEurofirst 300 index of European companies was flat.
Akzo reiterated that its performance improvement program was
on track to be completed in 2013, giving 500 million euros in
earnings before interest, tax depreciation and amortization
(EBITDA) benefit at the end of the year, a year early.
AkzoNobel - which makes performance coatings for cars,
aircraft and ships as well as specialty chemicals for the pulp
and paper industry - said in July it would take additional
restructuring charges to reflect deteriorating growth prospects
in China, India and Brazil.
The company reported third-quarter EBITDA of 456 million
euros on revenue of 3.78 billion euros.
Analysts in a poll commissioned by Reuters had expected
EBITDA of 457 million euros and revenue of 3.76 billion euros.
In the past 18 months, it has taken a huge writedown on its
purchase of Dulux paint maker ICI and sold its struggling North
American decorative paints arm to U.S. rival PPG Industries
for $1.1 billion to focus on its larger European and
fast-growing businesses and markets.