Akzo Nobel NV lifted expectations for the year after the paintmaker cut costs with raw material set to fall.
The owner of the Dulux brand now targets adjusted earnings before interest, tax and amortization of as much as €1.55 billion ($1.7 billion) this year, slightly higher than before, it said Tuesday.
Paint and coating makers are seeing some pressure dissipate as surges in the cost of raw materials have eased. But with the global economy softening, there are still concerns about demand, especially in key architectural and industrial end markets, and Akzo Nobel’s second-quarter earnings of €367 million fell short of analyst forecasts.
Volumes were 1% lower, “with trends improving after a weak start to the quarter,” the company said in its earnings statement. The Turkish lira’s devaluation alone dragged down the revenue by €46 million in the quarter.
