AkzoNobel misses Q3 forecasts as China's real estate slowdown drags paint sales
Q3 adj. EBITDA at 394 mln euros vs consensus of 404 mln euros
Weak consumer confidence in China weighs on paint sales
China's high industrial activity helps coatings business
Adds detail on China, quotes from CFO interview in paragraphs 1-6
By Anna Peverieri and Dimitri Rhodes
Oct 23 (Reuters) -Dulux paints maker AkzoNobel AKZO.AS missed expectations for third-quarter revenue and earnings on Wednesday, as China's weak real estate market weighs on the sales of its decorative paints.
Shares in the Dutch paints-and-coatings maker were down 4.6% at 1219 GMT. They have fallen nearly 20% so far this year after a string of consensus misses in recent quarters.
"Our business in China is doing really well on the industrial side and it is doing pretty badly on the consumer side," finance chief Maarten de Vries said during a press call.
AkzoNobel's industrial unit, which makes specialised coatings used by many industries, benefits from high industrial activity bolstered by China's economic stimulus. The decorative paints business meanwhile is affected by low consumer confidence in the country.
"The government is trying to stimulate the real estate market which will stimulate paint sales, but that's still a work in progress," de Vries told Reuters. He added the issue in the China consumer business represented 6-7% of the group's sales.
The company said organic sales of its consumer products fell 11% in Asia in the quarter, largely due to competitive pricing and tough market conditions in China.
At the group level, third-quarter revenue fell 3% to 2.67 billion euros ($2.88 billion), missing the 2.76 billion euros expected by analysts on average.
Organic sales in the decorative paints business rose 1%, helped by higher pricing outside of China, but weighed down by flat sales in Europe and the Middle East alongside the decline in Asia.
Sales in the coatings division rose 2% organically, boosted by growth in its Marine, Protective and Powder Coatings units.
AkzoNobel said it expected its adjusted core profit (EBITDA) to reach 1.5 billion euros this year, at the bottom of its earlier forecast range and in line with analysts' expectations.
Third-quarter adjusted EBITDA fell 4.8% to 394 million euros, below the consensus of 404 million euros.
($1 = 0.9256 euros)
Reporting by Anna Peverieri and Dimitri Rhodes in Gdansk; editing by Milla Nissi
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Javobgarlikdan voz kechish: XM Group korxonalari har biri faqat ijro xizmatlarini koʻrsatadi va onlayn savdo platformamizdan foydalanish huquqini beradi, bu odamga veb-saytda yoki veb-sayt orqali mavjud boʻlgan kontentni koʻrish va/yoki undan foydalanishga ruxsat beradi hamda uni oʻzgartirishga moʻljallanmagan va uni oʻzgartirmaydi yoki kengaytirmaydi. Bunday kirish va foydalanish huquqi doimo quyidagilarga boʻysunadi: (i) Shartlar va qoidalar; (ii) Risklar haqida ogohlantirish; va (iii) Javobgarlikni toʻliq rad etish. Shuning uchun bunday kontent umumiy maʼlumot sifatida taqdim etiladi. Xususan, shuni esda tutingki, bizning onlayn savdo platformamiz mazmuni moliyaviy bozorlarda biror bitimni amalga oshirishga oid maslahat yoki taklif emas. Har qanday moliyaviy bozorda savdo qilish sizning kapitalingiz uchun jiddiy risk darajasini oʻz ichiga oladi.
Onlayn savdo platformamizda chop etilgan barcha materiallar faqat taʼlim/axborot maqsadlari uchun moʻljallangan va unda moliyaviy, investitsiya soligʻi yoki savdo maslahatlari va tavsiyalar; yoki bizning savdo narxlarimizning qaydlari; yoki har qanday moliyaviy vositalar bilan bitim tuzish maslahati yoki taklifi; yoki sizga kerak boʻlmagan moliyaviy reklama aksiyalari hisoblanmaydi
Har qanday uchinchi tomon kontenti, shuningdek XM tomonidan tayyorlangan kontent, masalan: fikrlar, yangiliklar, tadqiqotlar, tahlillar, narxlar va boshqa maʼlumotlar yoki bu veb-saytda joylashgan uchinchi tomon saytlariga havolalar umumiy bozor sharhi sifatida "boricha" taqdim etiladi va investitsiya maslahatini tashkil etmaydi. Har qanday kontent investitsiya tadqiqoti sifatida talqin qilinsa, siz bunday kontentni investitsiya tadqiqotlarining mustaqilligini ragʻbatlantirish uchun moʻljallangan qonun talablariga muvofiq moʻljallanmagan va tayyorlanmaganligini eʼtiborga olishingiz va qabul qilishingiz kerak, shuning uchun unga tegishli qonunlar va qoidalarga muvofiq marketing kommunikatsiyasi sifatida qaraladi. Mustaqil boʻlmagan investitsiya tadqiqoti va yuqoridagi maʼlumotlarga oid risk haqida ogohlantirishimizni oʻqib chiqqaningizga va tushunganingizga ishonch hosil qiling, unga bu yerdan kirish mumkin.
