AMSTERDAM AkzoNobel NV (AKZO.AS), the world's largest paints maker, reported a 2.4 billion euro ($3.15 billion) net loss in the third quarter after taking an impairment charge on its decorative paints business, citing the weak economy in Europe.
The Dutch company, owner of the Dulux paints brand, said that in addition to the 2.5 billion euro impairment charge, it was also looking at further cost cuts, on top of the 500 million euros of savings that it announced a year ago.
"The principal concern remains the decorative paint markets in Europe. The impairment taken in this quarter is a reflection of these concerns and our realistic assessment of the markets going forward," Keith Nichols, chief financial officer, said in a statement, adding a quick recovery in the economy is unlikely.
The firm - which makes performance coatings for cars, aircraft and ships, as well as specialty chemicals such as those used in the pulp and paper industry - reported third-quarter earnings before interest, tax and depreciation (EBITDA) of 540 million euros on revenue of 4.28 billion euros.
Analysts in a poll commissioned by Reuters had forecast EBITDA before incidentals of 540 million euros and a net profit of 154 million euros, on revenue of 4.267 billion euros.
($1 = 0.7621 euros)
(Reporting by Sara Webb)