Akzo Nobel N.V. has reported positive volume growth and an improvement in return on sales (ROS) for the full-year 2014. Excluding incidentals, ROS was 7.5 percent (2013: 6.1 percent).

Operating income excluding incidentals grew 20 percent to €1,072 million (2013: €897 million), reflecting higher benefits from ongoing operational efficiency programs and lower restructuring charges, offset by higher adverse incidental items. Contrary to positive incidental items of €61 million in 2013, mainly related to gain on divestments, the negative incidental items of €85 million in 2014 relate to provisions for legacy items, an external fraud suffered by one of our subsidiaries in the US, and project costs related to a divestment. Net income attributable to shareholders was €546 million (2013: €724 million which includes exceptional items). Revenue for the full year declined 2 percent, with volume up 1 percent in all Business Areas, more than offset by negative currency effects and divestments.

CEO Ton Büchner said: “For the full year we achieved further improvements in our operational performance, visible in our return on sales and return on investment levels. The introduction of several commercial excellence initiatives will help us drive organic growth going forward.

“2014 was challenging, evidenced by negative currency effects, a continued lack of growth in Europe and a slowdown in some of the Asian and Latin American economies. During the year, we continued to build a solid foundation and remain on track to deliver on our 2015 target,” he added.

He concluded, “The year was also notable for several key achievements. A major highlight for us in 2014 was the launch of our Human Cities initiative and our partnership with 100 Resilient Cities. We introduced the first carbon credit methodology for the international shipping industry, which allows ships to generate income in the form of carbon credits by reducing CO2 emissions. We were also especially pleased to be ranked first on the Dow Jones Sustainability Index (in the Materials industry group) for the third year in a row.”