Akzo Nobel's First-Quarter Profit Surpasses Forecasts
(Reuters) -Dulux paint maker Akzo Nobel reported a 1.7% drop in its first-quarter core profit on Wednesday, beating expectations, citing cost reductions and higher pricing.
The Dutch paints and coatings maker posted adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of 357 million euros ($406.7 million), down from 363 million euros a year ago, but above the 345 million euros expected by analysts in a Vara consensus provided by the company.
"Our efficiency measures are paying off, allowing us to compensate for softer markets and persistent inflation," CEO Greg Poux-Guillaume said in statement.
Akzo, which sells decorative paints and specialised coatings, said it sees a manageable annualized EBITDA cost from the tariff war between the U.S. and China, with U.S. exports set to be impacted by 25 million euros and U.S. imports impacted by 10 million euros.
"Our local-for-local and procurement derisking strategic principles continue to largely shield us from direct impacts on our cost base or our ability to deliver," the CEO added.
The group reported a revenue of 2.61 billion euros in the first quarter, down 1% but beat the 2.64 billion euros expected by analysts in a company-provided consensus.
($1 = 0.8777 euros)
(Reporting by Dimitri Rhodes; Editing by Mrigank Dhaniwala and Sonia Cheema)
