The world's top paint maker AkzoNobel on Wednesday posted a small drop in profit for 2016, but said targets were on track for the next two years. Net profit slipped by 1.0 percent to 970 million euros ($1.02 billion) "mainly due to lower incidental items compared to 2015," the Amsterdam-based group said.
This was despite "record levels of profitability in 2016 ... and continuous improvement and growth," chief executive Ton Buechner added in a statement.
In 2015, AkzoNobel had posted a record year with profit virtually doubling thanks to cheaper raw materials, favourable exchange rates and the sale of a subsidiary.
But in 2016, turnover also declined by 4.0 percent to 14.19 billion euros "due to unfavourable currency and price-mix effects," the group said.
AkzoNobel also completed its take-over of the industrial coatings business of BASF, the world's largest chemicals maker, for 475 million euros.
"This business is expected to generate sales of around 280 million euros in 2017," AkzoNobel said.
It added that it was opening new plants in the United States, Britain, China and India.
Its decorative paints arm, which makes well-known brands including Dulux, said turnover was down 4.0 percent. And industrial paints also saw a 5.0 percent decline in turnover due to "adverse conditions in the marine, oil and gas industries."
However, AkzoNobel said it remained on track in its 2016-2018 targets.
"We are now a stronger, more agile company with excellent brands, a global presence and a solid financial and operational foundation," Buechner said.
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