F O C U S Asian Paints net profit, sales rise 30% in 1Q 2008
C OAT I N G S
The most recent product from Enviroline is a thin layer epoxy coating, which complies with South Coast Air Quality Management District norms with regard to volatile organic compounds emissions. 375UHS is designed for oil and gas storage tanks, boats and other distribution equipment in need of protection from petrochemicals.
improved profitability. During the quarter the company successfully launched new powder coating ranges in China and the rest of Asia Pacific. Because it supplies customers domestically from its global organization, the company was able to avoid some of the adverse effects of shifting exchange rates.
Chemical Business (India), Aug 2008, 22 (8), 29
Chimie Pharma Hebdo, 3 Nov 2008, (442), 15 (in French) & Het Financieele Dagblad, 27 Oct 2008, (Website: http://www.fd.nl/) (in Dutch)
AkzoNobel Interim Report 3Q 2008: Resilient Performance Underlines Fundamental Strength, 29 Oct 2008, 12-15 (AkzoNobel, Strawinskylaan 2555, PO Box 75730, 1070 AS Amsterdam, the Netherlands, tel: +31 20 502 7555, fax: +31 20 502 7666, website: http://www.akzonobel.com)
Business digest: Akzo Nobel defers share buy-back scheme
AkzoNobel 3Q 2008: Performance Coatings
Dutch firm Akzo Nobel has deferred its €1.6 bn buy-back scheme to protect its corporate bond refinancing from the current financial crunch. The paints and coatings firm is also laying off 3500 employees in the firm’s decorative paint businesses in North America and Europe.
For its 3Q 2008 (period ends 30 Sep 2008), the Performance Coatings segment of AkzoNobel has reported revenue of €1138 M (€1139 M for its 3Q 2007), of which: industrial activities accounted for €498 M (€525 M), marine & protective coatings €336 M (€308 M), car refinishes €222 M (€226 M), and packaging coatings €91 M (€88 M); EBITDA of €143 M (€145 M), EBIT of €122 M (€1255 M), and capital expenditure of €20 M (€28 M). For the first nine months of its fiscal 2008, this segment has reported revenue of €3409 M (€3399 M for the same period of its fiscal 2007), of which: industrial activities accounted for €1497 M (€1532 M), marine & protective coatings €998 M (€940 M), car refinishes €677 M (€693 M), and packaging coatings €265 M (€262 M); EBITDA of €431 M (€429 M), EBIT of €3705 M (€368 M), and capital expenditure of €58 M (€72 M), and headcount of 21,170 (20,905). There is detailed discussion of this segment’s four business areas. Within Industrial Activities, the Powder Coatings business put in another satisfactory quarter, despite the economic slowdown in Europe and North America. Improvement in margins, combined with active management of costs, is driving
Asian Paints’ consolidated net profit rose by 29.6% to Rup 1062 M in 1Q ended 30 Jun 2008 from Rup 810 M in 1Q 2007. The increase was attributed to sales up 29.3% to Rup 12,420 M. The firm’s decorative and industrial paint divisions as well as international business all showed good growth.
Chemistry and Industry (London), 13 Oct 2008, (19), 13 (Website: http://www.chemind.org)
Coatings: AkzoNobel finalizes acquisition of Enviroline Dutch group AkzoNobel has consolidated its Marine and Protective Coatings division’s portfolio with the acquisition of Industrial Environmental Coatings Corporation’s Enviroline business in Florida. Enviroline is a supplier of high performance anticorrosion coatings, primarily for the N American oil and gas industry. The deal (financial details of which have not been disclosed) includes the transfer of employees. AkzoNobel claims the deal will consolidate its existing position as a major supplier to the oil and gas sector by expanding its portfolio of protective products for harsh environments. AkzoNobel’s Marine and Protective Coatings division accounted for 19% of group sales in 2007 (€1.25 bn). DECEMBER 2008
Akzo makes staff cuts AkzoNobel is to eliminate 50 jobs in the USA by end-2008 as part of plans to close its headquarters in Hudson, OH, USA. Plans also include transferring around 50 administrative positions from Hudson to its new headquarters in Strongsville, OH, USA. The staff cuts are expected to be implemented in phases commencing on 7 Nov 2008. APCJ, Asia Pacific Coatings Journal, Oct 2008, 21 (5), 4
Paint cuts costs Japanese firm Kawakami Paint has developed a powder paint that can be cured at 110°C in 20 minutes instead of the old 180°C. It is currently being provided to prospective user firms in sample form. APCJ, Asia Pacific Coatings Journal, Oct 2008, 21 (5), 4
Business digest: Rohm & Haas opens technical laboratory in Singapore Speciality chemical maker Rohm & Haas, unit of Dow Chemical, has inaugurated its Southeast Asia technical laboratory in Singapore to assist paints and coatings makers in the area. Chemistry and Industry (London), 27 Oct 2008, (20), 13 (Website: http://www.chemind.org)