Amsterdam, The Netherlands -- Hans Wijers, chief executive officer of chemicals and coatings group Akzo Nobel is unhappy with the group's performance in the second quarter of 2011.
Akzo Nobel's revenue for Q2 rose 5 percent to Euro 4100 million ($5806 million), driven by volume and pricing, before currency headwind of 3 percent. But raw material inflation, challenging trading conditions and one-off factors lowered the quarter's earnings (EBITDA) to Euro 551 million (2010: Euro 614 million), said the company's Q2 results statement.
"I am not satisfied with our performance in the quarter, despite positive volume and pricing developments," Wijers commented.
"The recent months have been challenging and it does take time for price increases to work through. We remain on track to deliver our medium-term growth ambitions, and we continue to invest in our businesses as shown by our announcements in this quarter.
"In addition we are implementing additional performance improvement measures and functional and operational excellence initiatives."
Akzo Nobel's total net income for Q2 2011 was Euro 268 million (2010: Euro 273 million). The company said that full-year 2011 EBITDA would be "at least in line with the prior year, assuming no further deterioration in economic conditions."
By business area, decorative paints had Q2 revenue of Euro 2667 million, an 8-percent rise over 2010, performance coatings, which includes polyurethane materials, had revenue of Euro 2459 million, a 10-percent rise, and speciality chemicals revenue was Euro 2701, a 12-percent rise over that of Q2 2010.