Akzo Nobel’s Q2 results hit by COVID lockdowns and weak demand

AkzoNobel’s logo is seen in Amsterdam, Netherlands, February 16, 2012. REUTERS/Robin van Lonkhuijsen/United Photos

Join now for FREE unlimited access to Reuters.com

AMSTERDAM, June 14 (Reuters) – Dutch paints and coatings maker Akzo Nobel (AKZO.AS) said on Tuesday its second-quarter operating profit would be around 90 million euros ($94 million) lower ) to forecasts due to lockdowns in China and weak demand for decorative paints in Europe.

Lockdowns in China weighed on paints and coatings sales in the second quarter, Akzo said, while the country’s reopening in June was not enough to recover all missed revenue.

Overall, this will lower operating income by about 40 million euros compared to the average analyst expectation for the second quarter, a spokesperson said.

Join now for FREE unlimited access to Reuters.com

Results were also impacted by relatively weak demand for decorative paints from European consumers in April and May, driving up inventory costs in Akzo’s supply chain.

Although demand returned to 2019 levels in June, operating profit from the decorative paints business will be down around 50 million euros from previous expectations, Akzo said.

The latest poll published on Akzo’s website showed analysts on average expect operating profit to fall 12% in the second quarter to 337 million euros, from 384 million euros a year earlier. year before.

($1 = 0.9582 euros)

Join now for FREE unlimited access to Reuters.com

Reporting by Bart Meijer, editing by Louise Heavens

Our standards: The Thomson Reuters Trust Principles.

.

Leave a Comment