Akzo Nobel N.V. (AKZA; AKZOY) today provides a further update on recent business performance and announces preliminary financial results for the second quarter of 2020:

• Revenue 19% lower at €1,987 million (2019: €2,451 million)
• Adjusted operating income* €238 million (2019: €305 million)
• ROS2**, excluding unallocated cost, increased to 14% (2019: 13.7%)

Market headwinds continued to ease during Q2, although revenue for June was nearly 5% lower than the same month in 2019. As previously announced, revenue for May was around 20% lower than last year, while market headwinds were strongest during April, when revenue was almost 30% lower compared with 2019.

Trends have differed significantly per region and segment. Demand for Decorative Paints rebounded strongly in Europe – and faster than company planning assumptions. By the end of the second quarter, China had almost recovered to previous levels, although other regions continued to be impacted by varied degrees of lockdown. As expected, demand for Performance Coatings continued to improve during the quarter, although remained significantly below the previous year, especially for automotive and aerospace related markets.

Strong margin management and strict temporary cost-saving measures have helped to compensate for lower end market demand.

AkzoNobel will provide further information and publish financial results for the second quarter and half-year on July 22, 2020.

* Adjusted operating income = Operating income excluding identified items
** ROS = Adjusted operating income as percentage of revenue (excluding unallocated cost)