Akzo Nobel's (AKZA) first quarter was predictably tough and it's Europe, where volumes fell across all divisions, that's causing most problems for the Dutch paints and chemicals company. Finance boss Keith Nichols doesn't expect any quick end to these trends, either. Still, this was always going to be a slow burner despite the rapid pace of cost-cutting and chief executive Ton Büchner's programme of cultural change.
A 7 per cent drop in revenue during the three months knocked operating income by 8 per cent to £217m. That, however, did beat consensus estimates and margins were steady, too. In fact, cost-cutting actually improved returns at the performance coatings business, and profit from decorative paints soared almost three-quarters on lower restructuring charges and falling costs, offset by disposals and production stoppages at a number of chemical plants.
