Akzo Nobel, the Dutch maker of Dulux paint, reported lower-than-expected third-quarter operating earnings of 383 million euros ($451 million) on Wednesday, citing “headwinds” at its marine coatings business and margin pressures from rising raw material costs.
It said earnings before interest and taxes for the year would now be about flat from 2016 — its second warning since saying in July it was on track to meet the goal of 100 million euros in EBIT growth it had promised as part of its rationale for rejecting a 26-billion-euro takeover from PPG Industries in May.
Analysts polled by Reuters had expected third-quarter earnings before interest and taxes (EBIT) at 432 million euros, down from 442 million euros in the same period a year ago.
Akzo has struggled since refusing PPG’s advances, seeing both its CEO and CFO resign for health reasons and saying in September that full-year EBIT would grow by less than 100 million euros after all.
“EBIT for 2017 is now expected to be in line with 2016,” said new CEO Thierry Vanlancker, citing “adverse foreign exchange, ongoing industry specific headwinds and supply chain disruptions, including the adverse impact of Hurricane Harvey in the US.”
Akzo said on Wednesday that two other promises to shareholders — a superdividend of 1 billion euros before the end of the year and the sale or IPO of its Specialty Chemicals arm by early next year — are still on track.
Akzo Nobel issues profit warning after third-quarter earnings miss