Akzo Nobel (AKZA) has undergone substantial change since new management took charge and the Dulux paint company continues to beat expectations. Rising volumes and cost savings generated 25 per cent growth in operating profit during the fourth quarter, and Deutsche Bank has upgraded its forecasts for this year and next.
IC TIP:
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at
57.89€
New financial targets are within range, too, says management. It wants underlying operating margin of 9 per cent in 2015, from 6.6 per cent last year, and return on capital of 14 per cent versus 9.6 per cent in 2013. Further savings are also likely and, having smashed its cost savings target of €500m (£416m) a year early, confidence is high.
