Tuesday, 27 October 2009

Akzo Nobel results allow cautious optimism

Dutch coatings group Akzo Nobel produced third quarter results today which were above analysts expectations.

Martin Evans of Cazenove analysts said in a note: "A good result, above consensus - with stabilisation continuing, and cost savings helping, although the recovery remains “fragile”. End market demand for paints, coatings and chemicals remains mixed, although Asia and Latin America remain much better. The US does not seem to be getting any worse although is still depressed. Inventory levels remain low due which should continue to help a steady restocking phase in due course, although customers remain cautious of building up too high inventories ahead of the year end.

The tentative recovery story continues, and with the Q3 results season now in full swing we will see if similar levels of recovery emerge across Europe's chemical sector.

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