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.

Akzo Nobel blows the whistle

Dutch chemical group AkzoNobel has received full immunity from a €17.4m fine which would otherwise have been imposed by the European Commission following an investigation into price fixing involving the company's Calcium Carbide business between November 2004 and November 2006.

According to chemie.de the infringement was reported to the European Commission by AkzoNobel at the end of 2006 and an application for immunity was made. It quotes the company as saying: "AkzoNobel regrets the inappropriate actions taken by certain individuals and stresses that the breach was reported internally through the company's intensified competition law compliance program. Immediate steps were then taken to report the infringement to the appropriate authorities and AkzoNobel has cooperated fully throughout the investigation."