|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||86.68 - 88.28|
|52 Week Range||45.73 - 93.10|
|Beta (5Y Monthly)||1.02|
|PE Ratio (TTM)||31.37|
|Earnings Date||Feb 17, 2021|
|Forward Dividend & Yield||1.92 (2.18%)|
|Ex-Dividend Date||Oct 23, 2020|
|1y Target Est||84.71|
October 21, 2020 AkzoNobel delivers strong Q3 results with 3% growth in volumes and 18% increase in adjusted operating incomeAkzo Nobel N.V. (AKZA; AKZOY) publishes results for third quarter 2020Highlights Q3 2020 * ROS, excluding unallocated costs, increased to 17.7% (2019: 13.8%) due to strong margin management and cost savings * Growth in volumes of 3%, with strong demand trends for most segments and regions * Total cost savings delivered €49 million, of which €27 million structural savings related to transformation initiatives * Net cash from operating activities improved by 46% to €457 million (2019: €312 million); maintained a strong balance sheet * On October 19, the acquisition of Titan Paints in Spain was announced, with completion expected before the end of Q1 2021 * €300 million share buyback announced, to be completed in the first half of 2021 Q3 2020 (compared to Q3 2019) * Revenue 5% lower, while up 1% in constant currencies. Volumes up 3%, showing strong demand for Decorative Paints, partly offset by lower volumes of Performance Coatings and unfavorable price/mix of 1% * Adjusted operating income up 18% at €353 million (2019: €300 million); ROS increased to 15.5% (2019: 12.5%) * Operating income of €326 million includes €27 million negative impact from identified items, related to transformation costs (2019: €247 million operating income, including €53 million negative identified items); OPI margin up at 14.3% (2019: 10.3%) * Net income attributable to shareholders increased 36% to €220 million (2019: €162 million) * Adjusted EPS from continuing operations up 34% at €1.30 (2019: €0.97); EPS from total operations at €1.15 (2019: €0.79) * Interim dividend of €0.43 per share (2019: €0.41) AkzoNobel CEO, Thierry Vanlancker, commented: “We delivered an excellent performance for the third quarter, with revenue growth in constant currencies, and business return on sales up at 17.7% driven by strong discipline on margins and cost savings. These results were made possible by the continued commitment of all AkzoNobel colleagues around the world, adapting to the challenges presented by COVID-19.“Although the macro-economic environment remains uncertain, we’re continuing to build on our solid position as a frontrunner in our industry, committed to serving our customers with more innovative and sustainable solutions. That's why we're proud to have received a Platinum rating from EcoVadis for corporate social responsibility and sustainable procurement.”AkzoNobel in € millionsQ3 2019Q3 2020Δ%Δ% CC3 Revenue2,3982,276(5%)1% Adjusted operating income230035318% ROS12.5%15.5% ROS, excluding unallocated costs113.8%17.7% Operating income24732632% Recent highlights 2021 Color of the Year announced Brave Ground has been unveiled as AkzoNobel’s Color of the Year for 2021. It’s a warm and grounding neutral shade that gives us the courage to embrace change. A range of palettes has been developed to help customers of the company’s Decorative Paints, Automotive and Specialty Coatings, Powder Coatings and Wood Coatings businesses choose on-trend colors with confidence.Chinese site makes switch to water-based products Our Guangzhou decorative paints site in China is undergoing a major upgrade to enable it to exclusively produce water-based products. It’s the last of our four Chinese deco plants to make the switch, enabling us to meet growing demand for more eco-premium, water-based paints.Platinum rating awarded by EcoVadis We’re proud to have been awarded Platinum by EcoVadis, a key rating agency which benchmarks sustainability performance. It means AkzoNobel is now in the top 1% of all companies and strengthens our leadership in sustainability. Stahl acquisition delivers unique powder coatings technology During Q3, we completed the acquisition of Stahl Performance Powder Coatings and its range of products for heat sensitive substrates. The deal gives us accelerated access to unique low curing technology which is the only one of its kind in the powder coatings industry. It includes both UV and thermally curing powders and will enable the company to penetrate the ultra-low cure (80-100°C) domain. Interpon launches immersive 3D imaging technology Choosing the right powder coating has never been easier, thanks to the introduction of immersive 3D imaging technology by our Interpon brand. The new color tool – available via the AkzoNobel Design app – is designed to help architects and specifiers find exactly the right product for their needs. As well as enabling users to digitally rotate coatings samples, it’s also possible to zoom in and out and view them in the context of different environments.European business to be strengthened following acquisition of Titan in Spain We’re targeting further growth in Europe after announcing on October 19 that we’ve agreed to acquire the decorative paints business of Spain’s Industrias Titan S.A.U., one of the country’s best-known brands. Completion is subject to regulatory approvals and expected before the end of Q1, 2021.Outlook: AkzoNobel has suspended its 2020 financial ambition in response to the significant market disruption resulting from the pandemic. Headwinds related to COVID-19 continued to ease, although demand trends differ per region and segment in an uncertain macro-economic environment. Raw material costs are expected to have a favorable impact for the fourth quarter of 2020. Continued margin management and cost-saving programs are in place to address the current challenges. The company targets a leverage ratio of 1-2 times net debt/EBITDA and commits to retain a strong investment grade credit rating. The report for the third quarter 2020 can be viewed and downloaded at https://akzo.no/Q32020-Report 1 ROS excluding unallocated cost is adjusted operating income as percentage of revenue for Decorative Paints and Performance Coatings; it excludes unallocated corporate center costs 2 Adjusted operating income = operating income excluding identified items 3 Constant Currencies calculations exclude the impact of changes in foreign exchange ratesThis is a public announcement by Akzo Nobel N.V. pursuant to section 17 paragraph 1 of the European Market Abuse Regulation (596/2014).About AkzoNobel AkzoNobel has a passion for paint. We’re experts in the proud craft of making paints and coatings, setting the standard in color and protection since 1792. Our world class portfolio of brands – including Dulux, International, Sikkens and Interpon – is trusted by customers around the globe. Headquartered in the Netherlands, we are active in over 150 countries and employ around 32,000 talented people who are passionate about delivering the high-performance products and services our customers expect.Not for publication – for more informationMedia RelationsInvestor Relations T +31 (0)88 – 969 7833T +31 (0)88 – 969 7856 Contact: Hugo Stienstra Media.email@example.comContact: Lloyd Midwinter Investor.firstname.lastname@example.org Safe harbor statement This media release contains statements which address such key issues as AkzoNobel’s growth strategy, future financial results, market positions, product development, products in the pipeline and product approvals. Such statements should be carefully considered, and it should be under-stood that many factors could cause forecast and actual results to differ from these statements. These factors include, but are not limited to, price fluctuations, currency fluctuations, developments in raw material and personnel costs, pensions, physical and environmental risks, legal issues, and legislative, fiscal, and other regulatory measures, as well as significant market disruptions such as the impact of pandemics. Stated competitive positions are based on management estimates supported by information provided by specialized external agencies. For a more comprehensive discussion of the risk factors affecting our business, please see our latest annual report. www.akzonobel.com.Attachments * 20201021 PDF Media release Q3 2020 * 20201021 PDF Q3 report 2020 Final * 20201021 PDF Investor Update Q3 2020
(Bloomberg) -- Dutch phone company Royal KPN NV is facing another potential takeover attempt, and its new suitor faces more hurdles than its predecessors.EQT AB, the European private equity firm, is considering a takeover of KPN in what would be its largest-ever acquisition, Bloomberg reported Friday, citing people familiar with the matter. Shares rose as much as 8.4% in early trading on Monday, the most since March.KPN has long been a target. Less than two years ago rival investment firm Brookfield Asset Management Inc. considered its own approach. Canada’s largest alternative asset manager held talks with Dutch pension funds PGGM and APG Groep NV, but a bid never materialized.In 2013, billionaire Carlos Slim’s America Movil SAB attempted to acquire KPN for $9.7 billion. The bid stalled amid criticism of America Movil for not reaching an agreement with KPN’s management before taking its offer to the market.New LawTo be successful, EQT will not only have to get KPN’s management on board and defeat a takeover defense available to Dutch companies known as a stichting -- it will also have to navigate a new law written to further strengthen the deal defenses of the nation’s businesses, which was approved by both houses of Parliament earlier this year.“The Dutch government has a say in any deal, as KPN is a company with a high level of national interest,” said Konrad Zomer, analyst at ABN Amro. The combined powers of the stichting and the law “can block many deals. A takeover attempt for KPN won’t be straightforward.”The buyout firm is in the early stages of discussing the feasibility of a deal with potential advisers and there’s no certainty it’ll lead to a bid, said the people, who asked not to be identified because deliberations are private. The firm could try to win over the Dutch target by touting its experience with telecom and infrastructure assets as well as its Nordic roots, where good corporate citizenship is prized.Companies in the Netherlands are able to deter unwanted approaches by deploying independent shareholder foundations as a defense. Recent examples include Akzo Nobel NV, Mylan NV and Stork NV, which used preference shares to fend off efforts by hedge funds to fire the board and sell off units.KPN, whose foundation was created after the Dutch government sold down its stake in 1994, is one of the most notable examples of this poison-pill defense.In an attempt to control negotiations with America Movil, KPN’s foundation used preference shares to temporarily gain about half of the company’s stock. Though America Movil, the largest shareholder, had obtained approval from the Dutch financial regulator, it eventually withdrew its offer after concluding it couldn’t acquire enough stock to complete the deal.EQT will also have to contend with a law that allows the Dutch government to block telecom deals on national security grounds. This has become a more delicate issue than when Brookfield made its approach, given U.S. lobbying of European governments to ban Chinese telecom equipment maker Huawei Technologies Co. from local networks.The Dutch government has not implemented a ban, and KPN is still working with Huawei. However, it is choosing a Western vendor for its more sensitive core network.Before Stockholm-based EQT has to face foundations and politicians, a price needs to be agreed. Shares of KPN have fallen 15% in Amsterdam trading this year and are near an all-time low, giving the company a market value of about 9.4 billion euros ($11.1 billion). That’s just under America Movil’s bid offer seven years ago.“I think the KPN shares are undervalued and I can thus understand interest from private equity,” said Zomer. “Without any takeover premium I think the company is already worth 40-50% more than the current market value.”Any bid would be a test for Chief Executive Officer Joost Farwerck, who has been in role for only a year, and has been struggling with a weak consumer unit and the pandemic.Investment firm EQT’s interest in KPN, reported by Bloomberg News, would require a sizable premium for a successful bid, as well as an accord with the board and government on the level of infrastructure investments and employment. This could rule out an intervention by the KPN Foundation, which has an effective poison pill mechanism, and may tempt America Movil to sell its 16% stake, which was built at a high cost of 2.54 euros a share.Erhan Gurses, analyst, Bloomberg IntelligenceEQT does have plenty of experience in telecom deals. It joined with Digital Colony Partners to acquire fiber network owner Zayo Group Holdings Inc. in an $8 billion deal completed in March, and invested in Dutch telecom provider Delta Fiber, German broadband provider Deutsche Glasfaser and Maltese operator Melita.But other analysts are not convinced EQT can overcome the problems facing a Dutch telecom takeover. “We believe the probability of a takeover is low,” said Emmanuel Carlier, analyst at Kempen.(Updated with KPN shares)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
AkzoNobel (AKZOY) is seeing positive earnings estimate revisions, suggesting that it could be a solid choice for investors.