Third quarter - Upward trend continues
Third quarter - Upward trend continues Strong growth in Pharma, Coatings, and Chemicals - Acordis cyclically impacted * Sales : EUR 3.6 billion, up 6% (NLG 7.9 billion, GBP 2.4 billion, USD 3.8 billion) * Operating income : EUR 346 million, on par with third quarter 1998 (NLG 762 million, GBP 227 million, USD 363 million) * Net income : EUR 197 million (NLG 434 million, GBP 129 million, USD 207 million); 1998: EUR 195 million * Net income per share : EUR 0.69; 1998: EUR 0.68 * Financing charges down: Interest coverage at 5.3 * Pharma : Continued healthy double-digit growth * Coatings : Improved business climate * Chemicals : Sustained growth * Acordis : Cyclically / seasonally impacted * Interim dividend : EUR 0.30 * EUR 825 mln offer from CVC for Acordis : Divestment negotiations on schedule * Acquisition of Hoechst's veterinary business : Intervet to move into animal healthcare premier league * Outlook : Full-year net income expected to reach same order of magnitude as in 1998 Commenting on the results Fritz Fröhlich, Chief Financial Officer of the Company, said: "Our results in the third quarter continue to show strong growth for Pharma, Coatings, and Chemicals. However, Acordis was severely impacted by the downturn in the textile fibers cycle. Akzo Nobel's net income was slightly ahead of the third quarter of 1998, confirming the upward trend of the previous quarters this year. Excluding Acordis, which is currently under divestment, sales were up 7 percent and operating income increased 12 percent. Pharma continued to be the star performer, delivering 25 percent sales growth. Coatings, supported by an improved business climate, continues to reap the benefits of acquisitions. Excluding divestments, sales of the ongoing operations were up 7 percent and operating income up 11 percent. Chemicals sustained its strong performance and exceeded the third quarter of 1998, with sales up 19 percent and operating income up 17 percent. Acordis was negatively impacted by the combination of the severe effect of the textile fibers cycle and the traditional summer sales decline. Assuming no major changes in economic growth and currencies, we continue to expect full-year earnings- excluding nonrecurring items- to reach the same order of magnitude as in 1998." ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/10/27/19991027BIT00090/bit0001.doc http://www.bit.se/bitonline/1999/10/27/19991027BIT00090/bit0002.pdf