Dutch chemical group Akzo Nobel on Tuesday reported a 35 percent rise in core quarterly profit, above analysts' expectations, but remained silent on a possible move for British rival ICI.
Earnings before interest and taxes (EBIT) from continuing operations, excluding Organon BioSciences and one-off items, rose to 279 million euros ($385.5 million) in the second quarter compared with a year earlier, above an average forecast of 255 million euros in a Reuters poll of 13 analysts.
Akzo Nobel shares rose 1.3 percent to 63.75 euros by 1035 GMT, outperforming a 0.6 percent fall in the DJ Stoxx European chemical index. Second quarter revenue, excluding Organon BioSciences, was rose 2 percent to 2.7 billion euros, in line with forecasts.
Net profit was 270 million euros, compared to analysts' average expectation of 275 million euros. Akzo Nobel, whose 7.2 billion pound ($14.8 billion) offer for Imperial Chemical Industries was rejected last month, said it would continue to seek opportunities for strategic investments.
But Chief Executive Hans Wijers reiterated Akzo would be financially disciplined while seeking any acquisition. In its outlook Akzo said it expected to grow faster than its markets and to improve financial returns in 2007 for its coatings and chemicals units compared to 2006. But Rabo Securities analyst Mark van der Geest said that was still "vague" in a client note. Akzo Nobel, which bid 600-pence-a-share for ICI, the UK maker of Dulux paints, said it could not say anything about a possible move.