* EBITDA 437 mln euros vs forecast 416 mln
* Sales up 16 pct to 3.76 bln euros vs forecast 3.56 bln
* Says confident it can pass on higher raw materials costs
(Recasts lead, adds details)
By Aaron Gray-Block
AMSTERDAM, April 21 (Reuters) - Dutch chemicals group AkzoNobel (AKZO.AS) pledged more price rises to offset higher metals and oil-based raw materials costs as it lifted first quarter core profit 10 percent and kept its full-year forecast.
"We do have pricing power and are able to use our brands and market positions to do this. We are committed to an unchaged outlook," Chief Financial Officer Keith Nichols told reporters.
Nichols said raw materials prices were up 15 percent year-on-year, more than expected, and he did not see input costs easing in the near term.
ABN AMRO analyst Mark van der Geest said AkzoNobel's results were "very strong", backed by volume growth at decorative paints in Europe and the company's new contract to supply U.S. retail giant Walmart (WMT.N).
"Fasten your seatbelts, AkzoNobel has lift off," he said, pointing also to higher volumes at AkzoNobel's specialty chemicals unit.
The world's biggest paint company had earnings before interest, tax, depreciation and amortisation (EBITDA) excluding one-offs of 437 million euros, up 10 percent, and ahead of the average forecast of 416 million from a Reuters poll.
Group margins fell slightly year-on-year as the company's decorative paints and performance coatings units had EBITDA in line with forecasts, but the specialty chemicals unit beat forecasts. Margins rose quarter-on-quarter.
Quarterly sales rose 16 percent to 3.76 billion euros, due to 7 percent volume growth and 4 percent price rises, beating the average forecast of 3.56 billion and ahead of its target of 5 percent revenue and EBITDA growth for the full year.
AkzoNobel is facing higher costs for raw materials such as titanium dioxide, which is used as a paint pigment, metals and oil-related materials for resins due to the crisis in Libya.
United States rivals PPG (PPG.N) and Sherwin-Williams (SHW.N) had already forecast strong quarterly earnings due to price hikes, improved demand and cost cuts. Both firms will report later on Thursday. [ID:nSGE70I0DF] [ID:nN30122809] (Reporting by Aaron Gray-Block; Editing by Sara Webb and David Cowell)
* EBITDA 437 mln euros vs forecast 416 mln
* Sales up 16 pct to 3.76 bln euros vs forecast 3.56 bln
* Says confident it can pass on higher raw materials costs
(Recasts lead, adds details)
By Aaron Gray-Block
AMSTERDAM, April 21 (Reuters) - Dutch chemicals group AkzoNobel (AKZO.AS) pledged more price rises to offset higher metals and oil-based raw materials costs as it lifted first quarter core profit 10 percent and kept its full-year forecast.
"We do have pricing power and are able to use our brands and market positions to do this. We are committed to an unchaged outlook," Chief Financial Officer Keith Nichols told reporters.
Nichols said raw materials prices were up 15 percent year-on-year, more than expected, and he did not see input costs easing in the near term.
ABN AMRO analyst Mark van der Geest said AkzoNobel's results were "very strong", backed by volume growth at decorative paints in Europe and the company's new contract to supply U.S. retail giant Walmart (WMT.N).
"Fasten your seatbelts, AkzoNobel has lift off," he said, pointing also to higher volumes at AkzoNobel's specialty chemicals unit.
The world's biggest paint company had earnings before interest, tax, depreciation and amortisation (EBITDA) excluding one-offs of 437 million euros, up 10 percent, and ahead of the average forecast of 416 million from a Reuters poll.
Group margins fell slightly year-on-year as the company's decorative paints and performance coatings units had EBITDA in line with forecasts, but the specialty chemicals unit beat forecasts. Margins rose quarter-on-quarter.
Quarterly sales rose 16 percent to 3.76 billion euros, due to 7 percent volume growth and 4 percent price rises, beating the average forecast of 3.56 billion and ahead of its target of 5 percent revenue and EBITDA growth for the full year.
AkzoNobel is facing higher costs for raw materials such as titanium dioxide, which is used as a paint pigment, metals and oil-related materials for resins due to the crisis in Libya.
United States rivals PPG (PPG.N) and Sherwin-Williams (SHW.N) had already forecast strong quarterly earnings due to price hikes, improved demand and cost cuts. Both firms will report later on Thursday. [ID:nSGE70I0DF] [ID:nN30122809] (Reporting by Aaron Gray-Block; Editing by Sara Webb and David Cowell)
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