AKZOY Akzo Nobel NV (QX)

   By Adria Calatayud 
 

Akzo Nobel NV (AKZA.AE) said Wednesday that net profit soared in the fourth quarter after the sale of its specialty-chemicals business and that it will start a share buyback of up to 2.5 billion euros ($2.82 billion) later this month.

Net profit for the quarter ended Dec. 31 was EUR5.85 billion compared with EUR75 million in the year-earlier period, the Dutch paints company said. This included a EUR5.8 billion boost from the specialty-chemicals sale, said the company, which houses the Dulux, Polycell and Cuprinol brands.

Akzo last year split its specialty-chemicals unit and sold the business--now called Nouryon--to U.S. private-equity giant Carlyle Group LP and Singapore's GIC Private Ltd.

Operating profit fell 51% in the fourth quarter to EUR68 million, Akzo said. This was below analysts' forecasts of EUR102.1 million, according to a consensus estimate compiled by the company.

Quarterly revenue increased to EUR2.31 billion from EUR2.28 billion, the company said. Analysts had forecast Akzo to generate revenue from continuing operations of EUR2.21 billion, according to a company-provided consensus.

The board declared a final dividend of EUR1.43 a share post-consolidation, compared with a payout of EUR1.94 a share a year earlier.

Akzo said it will start a stock-repurchase program worth up to EUR2.5 billion around Feb. 25 as part of its plans to distribute EUR6.5 billion to shareholders. The buyback is due to be completed by the end of 2019, the company said.

Write to Adria Calatayud at adria.calatayudvaello@dowjones.com

(END) Dow Jones Newswires

February 13, 2019 01:51 ET (06:51 GMT)

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