AkzoNobel delivering on growth strategy

Akzo Nobel N.V. (AkzoNobel) reported a revenue increase of 12 percent for the year 2010 to €14.6 billion. EBITDA increased 16 percent to €1,964 million, with EBITDA margins up at 13.4 percent. Total 2010 net income increased 165 percent to €754 million.

Revenue growth was driven by a 6 percent volume increase across all three Business Areas as demand recovered, particularly in high growth markets.

For the fourth quarter, volumes were up 3 percent, pricing improved 4 percent and EBITDA rose 3 percent to €377 million. The total net income amounted to €162 million.

Raw material prices increased in 2010, particularly in the second half of the year. The company expects 2011 prices to increase further. Pricing and cost reduction actions are ongoing and AkzoNobel is confident that it will be able to compensate for these increases during 2011.

Net debt decreased from €1,744 million at year-end 2009 to €936 million at year-end 2010, mainly due National Starch divestment generating €1 billion of cash. Net cash from operating activities was €519 million (2009: €1,220 million) reflecting investment in working capital facilitating growth and higher restructuring payments in 2010.

In September 2010, the company announced a simplified dividend policy, stating that it intends to pay a stable to rising dividend. In line with this policy, AkzoNobel is proposing a final dividend of €1.08, which would make a total 2010 dividend of €1.40, up 4 percent from €1.35 in 2009.

CEO Hans Wijers commented: "Our 2010 performance marks the first year of delivery of our new strategy. All Business Areas have reported strong revenue growth, increased profitability, improved sustainability performance and higher returns on invested capital.