Strong revenue gains continued to be achieved in high growth markets across all business areas, while revenue development in the mature markets remained weak. Performance Coatings and Specialty Chemicals reported the strongest revenue increases of 18 and 15 percent respectively, with Decorative Paints revenue up 8 percent.
EBITDA for the third quarter rose 9 percent to €574 million, with total net income rising 21 percent on 2009 to €238 million.
On October 1, the company completed the sale of its National Starch business for US$1.3 billion. Two acquisitions were announced during the quarter - the Lindgens Metal Decorating Coatings and Inks business, and China's Changzhou Prime Automotive Paint Co., Ltd business, both within the Performance Coatings business area.
CEO Hans Wijers
"Our Q3 results clearly illustrate that, in line with our recently announced medium-term ambitions, our three business areas are growing revenue. Although there is reason for caution in mature markets, we are confident that we are in good shape to benefit from our geographic spread and leading positions. We are particularly optimistic about our strong revenue growth in high growth markets and our ongoing efforts to capture value. Our disciplined focus on customers, cost and cash remains strong, and we are making excellent progress in driving top line growth.
Our third quarter was also notable for two bolt-on acquisitions in Performance Coatings and, the sale of National Starch on October 1. The Sikkens healthcare concept for hospitals in the Netherlands was also launched and our Glidden brand clinched the contract to be the primary paint supplier for Walmart in the US.
Following the recent launch of our Value & Values ambitions, AkzoNobel is confidently entering a period of accelerated and sustainable growth. We will leverage our leading positions, global mega-trends and geographical spread to achieve our revenue target of €20 billion and grow our EBITDA each year while maintaining a 13 to 15 percent margin level."
Medium- term strategic ambitions
AkzoNobel has the aspiration to be the world's leading coatings and specialty chemicals company. On September 28, the company announced new medium-term ambitions to grow revenue to €20 billion, increase EBITDA each year while maintaining a 13 to 15 percent margin, reduce OWC percent of revenue year-on-year by 0.5 percent towards a 12 percent level, and pay a stable to rising dividend.
The sustainability ambitions are to remain in the top three on the Dow Jones Sustainability Indexes, to be top quartile in our peer group in terms of safety performance, diversity, employee engagement and development, and eco-efficiency improvement rates.
Construction and housing markets, particularly in mature markets, remain soft. However, AkzoNobel's leading positions, scale and presence in diversified markets, together with a strong balance sheet and evidence of sustained industrial demand beyond re-stocking, give reason for cautious optimism.