Coatings giant Akzo Nobel's revenue in the first half of 2020 declines by 13%, layoffs up to 1,300 people

The sales revenue of the marine and protective coatings business in the second quarter fell by 24%, and at a constant exchange rate, it fell by 22%.
This was mainly due to the impact of the new crown pneumonia epidemic and the decrease in sales; the impact of end market demand on protective coatings products It is more serious than marine paint
.

The sales revenue of the automotive and specialty coatings business fell 36% in the second quarter and 34% at a constant exchange rate.
The positive price/combination ratio offset more than low sales
.
Automotive and specialty coatings are affected by the new crown pneumonia epidemic on the final market demand, which particularly affects the needs of the automotive and aerospace industries
.

The sales revenue of the industrial coatings business in the second quarter fell by 15%, and at a constant exchange rate, it fell by 13%.
This was mainly due to the decline in sales due to the impact of the new crown pneumonia epidemic
.
Packaging coatings continue to maintain positive momentum, and demand for coil coatings in North America has also increased
.

Akzo Nobel said that in the first quarter of 2020, the new crown pneumonia epidemic had an adverse impact on sales revenue of about 5%
.
Asia is most affected, with other regions only being affected from the second half of March
.
In the second quarter, the epidemic had an adverse impact on sales revenue of approximately 18%
.
Market headwinds were strongest in April, but this quarter has eased
.

The average income growth rate is severely affected by the new crown pneumonia epidemic
.
Akzo Nobel’s 2020-2025 growth rate includes the negative impact of the 2020 epidemic
.
The average revenue growth rate of decorative coatings and performance coatings from 2021 to 2025 is 3.
7% and 3.
6%, respectively, including the expected recovery in the first few years after the new crown pneumonia epidemic
.

Akzo Nobel CEO Thierry Vanlancker said that despite the low end market demand, as we continue to focus on margin management and cost-saving measures, the return on sales of our business in the second quarter increased by 30 basis points to 14%
.
"Our strict cash management and strong balance sheet put us in a solid position to cope with the ongoing uncertainty caused by the new crown pneumonia epidemic because we strive to provide strong performance and become the best in the industry
.
"

Akzo Nobel has suspended its 2020 financial targets in response to major market disruptions caused by the pandemic
.
Although the demand trend of each region and market segment is different under the uncertain macroeconomic environment, the new crown pneumonia epidemic will continue to affect the second half of 2020
.
The cost of raw materials is expected to have a favorable impact in the second half of 2020
.
Continuous profit management and cost saving plans are in place to meet current challenges
.
The company's goal is to have a leverage ratio of 1-2 times net debt/EBITDA by the end of 2020, and promises to maintain a strong investment-grade credit rating
.
(Tu Jie)