Paint maker Akzo Nobel reports $81.5 million loss in 4th quarter

Akzo Nobel reports smaller loss in Q4

AMSTERDAM — Akzo Nobel NV, the world’s largest maker of paint, reported a smaller net loss for the fourth quarter on Thursday as a big write-off hit last year’s results and demand began to recover in its key markets.

Net loss was €60 million ($81.5 million), versus a loss of €1.51 billion in the same period a year ago. Sales fell 7 percent to €3.31 billion.

A year ago Akzo Nobel took a €1.28 billion charge to write down the value of British paintmaker ICI after buying it for €11.5 billion.

The company said demand has largely recovered to the same level it was at a year ago, with decreases in North America being offset by growth in Asia and Latin America.

“The stabilization we reported at the end of the third quarter has continued,” said Chief Executive Hans Wijers in a statement. “However, we believe the recovery is fragile and will be slow.”

Operating profits at the company’s three main divisions were all helped by lower restructuring costs and by lower purchasing costs.

At its decorative paints arm, which includes brands such as Glidden and Dulux, volumes fell 4 percent and operating profits fell 24 percent to €71 million. Akzo announced deals with Home Depot and Martha Stewart Living in the U.S. this year.

In the industrial coatings it makes for ships and planes, sales fell 8 percent but operating profit was up 30 percent to €153 million.

At the company’s chemical making operations, sales fell 9 percent but operating profits rose 16 percent to €217 million.

Despite the operating profits, higher financing expenses, notably for pensions, were enough to push the company to a loss.

Akzo Nobel has cut 3,000 staff in the past year and employs 57,000.