Dutch paints and coatings maker AkzoNobel said today that its second-quarter operating income will be about 90 million euros lower than expected due to the lockdown in China and weak demand for decorative paints in Europe.
China's lockdown measures dented paint and coatings sales in the second quarter, and China's June reopening wasn't enough to make up for all the lost revenue, Aksu said.
Overall, this will reduce operating income by around 40 million euros compared to analysts' average forecast for the second quarter, a spokesman said.
Results were also impacted by relatively weak European consumer demand for decorative paints in April and May, pushing up inventory costs in Akzo's supply chain.
Despite demand returning to 2019 levels in June, operating income in the decorative coatings business will be around 50 million euros lower than previously expected, Aksu said.
Analysts on average expect operating income to fall 12 percent to 337 million euros in the second quarter, down from 384 million euros a year ago, according to the latest poll published on Aksu's website.
