Akzo Nobel Q1 profit hit by restructuring costs

Akzo Nobel says sales up but profit falls 45 percent in first quarter on restructuring costs

Associated Press

AMSTERDAM (AP) -- Akzo Nobel NV, the largest maker of paints, coatings and finishes by sales, has reported a 45 percent fall in first quarter profits, as sales rose but margins were hurt by restructuring costs.

The company reported net profit of €71 million ($93 million), down from €128 million in the same period a year earlier, while sales rose 5.6 percent to €3.97 billion mostly due to price increases to absorb raw materials costs.

The owner of brands such as Dulux and Glidden said Thursday that operations grew in emerging markets. However, in Europe and in North America, where it is Wal-Mart's main supplier, Akzo Nobel cut around 200 jobs and took €46 million in restructuring charges. Across all regions and businesses, it added around 1,200 employees and now employs 57,320.

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