Your Source for Up-To-Date News and Research on the Collision Repair Industry 

 

click here to subscribe to the FREE INSIGHT Editor's Desk News Alert Email

SUBSCRIBERS-ONLY
Today's News
INSIGHT This Month
INSIGHT Archives
Survey Center
Letter to the Editor

Business Tools
Subscription Information
CSI Reporting
Financial Analysis
IRS Audit Guide

Management/
Technical Info
Market Watch Rates
INSIGHT Inside this month's issue...

Feedback
Letter to the Editor

Akzo Nobel Reports 2000: Best Year Ever - Net Income Up 25 Percent

ARNHEM, the Netherlands -- Akzo Nobel, the multinational pharmaceuticals, coatings and chemicals company, has announced:

• Net Sales(1) : EUR 14.0 billion, up 15 percent (USD 13 bln, GBP 8.5 bln, NLG 31 bln)
• Operating income(2) : EUR 1.652 billion, up 16 percent (USD 1.5 bln, GBP 1.0 bln, NLG 3.6 bln)
• Pharma : Sales up 34 percent at EUR 3.8 billion (1999: EUR 2.9 bln), Operating income up 30 percent at EUR 772 million (1999: EUR 595 mln)
• Coatings : Sales up 6 percent at EUR 5.6 billion (1999: EUR 5.3 bln), Operating income up 3 percent at EUR 455 million (1999: EUR 441 mln) (for ongoing business +13 percent)
• Chemicals : Sales up 14 percent at EUR 4.7 billion (1999: EUR 4.2 bln), Operating income up 16 percent at EUR 456 million (1999: EUR 392 mln)
• Net income before extraordinary and nonrecurring items : Up 25 percent to EUR 946 million (1999: EUR

759 mln)

• Extraordinary and nonrecurring items : EUR 20 million net (1999: EUR -555 mln)
• Net income after extraordinary and nonrecurring items : EUR 966 million (1999: EUR 204 mln)
• Net income per share: 2000: EUR 3.31 (1999: EUR 2.66)
• Dividend : 2000: EUR 1.20 (1999: EUR 1.00)
• Gearing : 2000: 1.6 (1999: 2.3)
• Interest coverage : 2000: 6.1 (1999: 5.0)
• Outlook : Targeting net income of EUR 1 billion

Highlights 2000

• 25 percent increase in net income (excluding extraordinary and nonrecurring items)
• Dividend EUR 1.20 per share (1999: EUR 1.00)
• Sales up 15 percent, of which 6 percent organic growth and 7 percent from currency translation
• Operating income up 16 percent
• Pharma - record growth; now 47 percent of Akzo Nobel's operating income
• Coatings and Chemicals - strong start; softening market conditions later in the year
• Human healthcare - joint venture for pentasaccharides, a newly developed antithrombotic
• Animal healthcare - harvesting strong synergies of recent acquisitions
• Bolt-on acquisitions at Chemicals
• Aerospace Coatings now globalized through acquisition of Dexter Coatings
• Chefaro, Over-The-Counter activities, divested for EUR 140 million
• Provisions for antitrust cases and restructurings more than offset by gains on divestments
• Interest coverage 6.1 (1999: 5.0)
• Gearing improved from 2.3 to 1.6

Cees van Lede, Chairman of the Board of Management, commented, "This was the first year of operation of the new Akzo Nobel after the divestment of Fibers. It has made us a more balanced company. Our company was clearly reaping the benefits of its improved portfolio. 2000 was the best year ever for Akzo Nobel.

"By organic growth and also through a number of acquisitions and divestments, we were able to further strengthen our industrial base. Geographically we were also able to strengthen our position by growing the business in the right places. In the United States, growth clearly surpassed our plans. Pharma's growth of over 30 percent has been spectacular. Akzo Nobel's sales in the United States now represent well over 25 percent of the total. In Asia, we benefited from a remarkably quick recovery from the crisis that erupted in 1997, where our Asian network - stemming from former Courtaulds - proved most useful. The integration of Kanebo, acquired in 1999, strengthened our position in the human healthcare market in Japan.

"For 2001, we expect a somewhat lower growth rate in Europe than in 2000. In the United States, economic activity has fallen significantly, but an improvement later in the year is assumed. The Euro has recovered at the end of 2000 and may appreciate further from its present level.

"Against this background we have set ourselves the goal of achieving a net income of EUR 1 billion, excluding extraordinary and nonrecurring items, contingent on economic circumstances not further developing to our disadvantage."

The first year of the new Akzo Nobel has been an excellent one for the company. All three groups Pharma, Coatings and Chemicals contributed to the double digit growth of the ongoing business. Coatings made a strong start but had to live with weakening market conditions in the second half of the year. Coatings also had to absorb significant increases in raw material prices.

Cees van Lede said, "In Coatings we will use our skills and imagination to further strengthen our world leader position. The target is a return on investment of 30 percent. This will enable us to reap the benefits of a generation of acquisitions that have led to the No. 1 position worldwide for Coatings. We will consolidate and further expand this position though optimal planning of production and logistics, and through innovative new product development. We will continue our active acquisition policy."

©2000 Collision Repair Industry INSIGHT
All Rights Reserved

FEATURED
LINKS:

INSIGHT Supports the NABC!
Do You?