AkzoNobel 2Q 2013 results: outlook

AkzoNobel 2Q 2013 results: outlook

F O C U S benefits, while functional excellence is an important enabler. Various actions taken in operational excellence address product complexity re...

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F O C U S benefits, while functional excellence is an important enabler. Various actions taken in operational excellence address product complexity reduction, sourcing optimization, manufacturing and distribution excellence, and margin management across the entire organization. Since the announcement of the programme, the number of employees has been reduced by over 2500 FTE, of which around 800 in 2013. In the 1H of 2013, €69 M was spent on restructuring activities. Costs for the full year 2013 are expected to be in the order of €325 M, with the additional benefits becoming visible in 2014. Examples of additional restructuring activities include the upcoming initiatives in European Decorative Paints and Functional Chemicals. AkzoNobel will continue to implement new opportunities to optimize performance as it moves to a culture of continuous improvement and embedded operational excellence. Original Source: AkzoNobel, website: http://www.akzonobel.com (18 Jul 2013) © AkzoNobel NV 2013

AkzoNobel 2Q 2013 results: outlook According to AkzoNobel the economic environment remains challenging in the 2H of 2013 and the group does not expect an early improvement in the trends faced in its end-user market segments. AkzoNobel expects to increase restructuring charges in the 2H of 2013 by €120 M to around €325 M to secure the delivery of its 2015 targets. This means that full year operating income is unlikely to exceed the €908 M of 2012. The acceleration of the performance improvement programme and the strategic priorities announced in February are the right focus to have in these markets. Original Source: AkzoNobel, website: http://www.akzonobel.com (18 Jul 2013) © AkzoNobel NV 2013

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Abakan announces MCS’ incorporation to enter high-value coating services market Abakan Inc recently announced the incorporation of a new subsidiary, US-based MesoCoat Coating Services Inc (MCS), to provide thermal spray coating services using its multiple awardwinning nanocomposite PComP coating materials to improve component longevity and to combat corrosion and wear in the oil and gas, mining, aerospace, chemicals, metal processing and metal finishing industries. MCS already has a fully functional thermal spray coating facility with one coating cell in Euclid, OH, and plans to expand operations with the addition of two thermal spray coating cells and other surface preparation and finishing equipment for larger components that will be capable of handling 40-foot components. MCS is currently expanding its PComP powder production capacity sixfold to 30 tonnes/y, and expects to expand it further in early 2014 to 160 tonnes/y spearheaded by increasing demand from oilfield equipment manufacturers and other original equipment manufacturers. The significant interest in PComP materials has led to more than six months’ worth of back orders. Abakan’s PComP family of nanocomposite materials is the foundation for coatings that offer 3-80 times higher performance than current coatings for wear and corrosion resistance, such as conventional thermal spray coating, chrome plating, physical vapor deposition and other applications. The coatings combine very fine, near nano-scale ceramic particles with metal binders in a specific, hierarchical structure that provides the extreme hardness of a ceramic. In the near future, MCS plans to expand operations into Houston and into other key markets in North America and abroad. Original Source: MesoCoat, 2013. Found on SpecialChem Coatings and Inks Formulation, 9 Aug 2013, (Website: http://www.specialchem4coatings.com)

C O AT I N G S Asian Paints raises stake in Berger to 75.82% Asian Paints International Ltd has hiked its stake in the Singaporebased Berger International from 50.1% to about 75.82% by acquiring a 25.72% stake in the Singapore firm. Asian Paints plans to make an open offer to acquire the remaining stake in Berger Paints. Original Source: Business Standard, 22 Aug 2013, 16 (43), I.2 (Website: http://www.business-standard.com/) © Business Standard Ltd 2013

BASF interim report for 1H 2013: performance products segment In BASF’s Performance Products segment, sales were down from €4079 M in 2Q 2012 to €4032 M in 2Q 2013. Higher sales volumes could not entirely compensate for negative currency effects and the lower price levels brought about by reduced raw material costs (volumes 2%, prices –2%, portfolio 1%, currencies –2%). Income from operations before special items did not match the level of 2Q 2012. Sales declined in the Dispersions & Pigments division from €1003 M in 2Q 2012 to €963 M in 2Q 2013, mostly due to price and currency effects. The divestiture of the offset printing inks business (IMEX) in 3Q 2012 also contributed to this sales decline. BASF was able to raise sales volumes, particularly for dispersions. Restructuring measures resulted in lower fixed costs. Due to negative currency effects and a less favourable product mix, earnings nevertheless did not match the level of 2Q 2012. In the Care Chemicals division, sales grew from €1223 M in 2Q 2012 to €1232 M in 2Q 2013. The company raised sales volumes, particularly in ingredients for personal care and hygiene products. The company posted sales increase in the Nutrition & Health division from €509 M in 2Q 2012 to €544 M in 2Q 2013. The inclusion of the acquired OCTOBER 2013