AkzoNobel has provided a Q3 update as high macro-economic uncertainty, especially in Europe and China, led to a near-historical-low level of consumer confidence. According to the company, in anticipation, customers and channel partners in the paints and coatings industry are proactively destocking in these regions.
The Q3 adjusted operating income is expected to be in the range of €195 million to €215 million, compared to 2021’s €241 million, excluding a retroactive impact from hyperinflation accounting regarding Turkey.
AkzoNobel said current demand trends are expected to continue in Q4, while benefits will come from the company’s initiatives to reduce costs, improve working capital and ongoing pricing initiatives. While Q3 will see the highest raw material cost impact since the inflation cycle started in early 2021, pricing will continue to offset raw material and freight inflation. Overall raw material supply is normalising, and prices are starting to soften broadly.
Financial results for Q3 2022 will be announced on 20 October.