July 18, 2018 / 5:59 AM / 3 months ago

Akzo Nobel misses second-quarter core earnings, sales forecasts

AMSTERDAM (Reuters) - Akzo Nobel (AKZO.AS), the Dutch paints and coatings maker, on Wednesday said its operating income fell 23 percent to 225 million euros (£199.92 million)

FILE PHOTO: General view of the outside of AkzoNobel's new paint factory in Ashington, Britain September 12, 2017. REUTERS/Phil Noble/File Photo

as sales slid 3 percent in the second quarter, missing market forecasts.

Analysts polled for Reuters had expected adjusted operating income to drop 15 percent to 249 million euros. Sales had been seen slipping roughly 2 percent to 2.48 billion euros.

The results come after Akzo agreed in March to sell its specialty chemicals unit for 10.1 billion euros to a group of buyers led by Carlyle Group (CG.O).

Akzo said operating income in the latest quarter had been mainly hurt by 21 million euros in adverse foreign currencies and 20 million euros in non-recurring items.

In it full year outlook, Akzo said it expects “positive developments” at the Decorative Paints and Performance Coatings business, while in Marine and Protective Coatings “market conditions are still challenging.”

Raw material inflation is projected to continue for the remainder of 2018, although at a slower rate than during the start of the year, it said. It hopes to counter negative effects with pricing initiatives and cost-saving programs.

Reporting by Anthony Deutsch; Editing by Sunil Nair and Richard Pullin

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