AkzoNobel 2015 operating income up 59 pct

Dutch decorative paints company AkzoNobel's 2015 operating income increased 59 percent year-on-year to 1.57 billion euros (1.77 billion U.S. dollars), the company announced Wednesday.

Due to favorable currency effects partly offset by divestments and lower volumes, AkzoNobel's 2015 revenue went up 4.0 percent from 2014 to 14.86 billion euros.

Volumes were down 1.0 percent overall for the full year, as a flat development of volume in Europe and volume decline in Latin America offset AkzoNobel's volume growth in Asia.

The report forecasts 2016 will be a challenging year, as difficult market conditions continue in Brazil, China and Russia. Furthermore, no significant improvement is anticipated in Europe, particularly in the buildings and infrastructure segment. Deflationary pressures continue and currency tailwinds are moderating.

"We successfully achieved our 2015 financial targets in what was a record year for AkzoNobel in a number of areas including return on sales, return on investment and sustainability. The proposed increase of the total dividend is also a clear sign that we are more confident about our cash flow generation," CEO Ton Buchner said in a press release.

"Looking ahead, we expect 2016 to be a challenging year and anticipate limited support from the markets in which we operate. We will continue to build on our foundation of operational excellence, adding organic growth and innovation to the next phase of our strategy," Buchner added. Endit