Dutch Akzo Nobel, which fended off a 26 billion euro takeover approach from PPG Industries in May, warns that operating profit will not grow this year. As Laura Frykberg reports, it's the second downgrade to its forecast in the past two months.
Its famous Dulux dog has seen a few changes over the years. But executives at Dutch paint maker AkzoNobel may be wondering "what if?" It was doing pretty well when it fended off a 26 billion euro takeover approach from PPG Industries in May. Since then its seen its CEO and CFO resign for health reasons. And it's just announced its second forecast downgrade in as many months. Operating profit won't grow this year, after lower than expected third quarter earnings of 383 million euros. Its marine coatings business was partly to blame, along with rising raw material costs. The company's new CEO Thierry Vanlancker promised 2020 financial targets were on track, including a 15 percent return on sales. A 1 billion euro dividend will still be paid before the end of the year. And the sale or IPO of Akzo's speciality chemicals arm is still takine place in 2018. But some aren't convinced. Akzo shares fell almost 2 percent to 77 euros - well short of the 95 euros proposed by PPG.