AkzoNobel said in its quarterly earnings report that it is investing in the expansion of resin production as part of the company’s Grow & Deliver strategy. The program will "help build resilience against supply disruptions” while contributing to its financial and carbon-reduction ambitions, the company said in the report.
The company said it intends to “build resilience” against further raw-material supply disruptions.
AkzoNobel said its first-quarter revenue increased to €2.53 billion ($2.74 billion), from €2.26 billion ($2.45 billion) in the year-prior quarter. Adjusted earnings before interest, taxes, depreciation and amortization climbed to approximately €391 million ($424 million) from €317 million ($344 million).
AkzoNobel forecasted earnings growth this year and in 2023.
"Trends differ per region and segment, with raw material and other cost inflation, including freight, expected to gradually ease during the second half of 2022,” the company said in the release. "AkzoNobel aims to continue to offset raw material and other variable cost inflation, including freight, through pricing initiatives.”
CEO Thierry Vanlancker said that while revenue is growing in the paints and coatings businesses, the company is still coping with supply-chain challenges.
"Although uncertainties remain with regard to, amongst others, the sanctions on Russia, the Covid-19 resurgence in China and continued supply constraints — especially in North America — we remain confident in realizing our Grow & Deliver strategy,” Vanlancker said.