Jul 20, 2005. /Lesprom Network/. Akzo Nobel, the international pharmaceuticals, coatings and chemicals company, reports 6% top-line growth from present operations with revenues of Euro 3,354 million and net income of Euro 182 million, up 22% on the corresponding period of 2004. EBIT from present operations was up 25% at Euro 341 million compared to Euro 272 million in 2004 due to favorable one-off items. EBIT excluding these one-offs was 9% below last year at Euro 312 million compared to Euro 343 million in 2004. For the first half of 2005, net income jumped 66% to Euro 469 million. This includes the Euro 149 million pretax special benefit to Organon from the termination of the Risperdal® copromotion. Commenting on the company’s second quarter 2005 figures, Rob Frohn, Akzo Nobel’s CFO said, “We are seeing encouraging developments across our businesses despite lower like-for-like operating income. Organon’s top-line grew across the board and as planned R&D expenditures are being ramped up substantially. Intervet had its best quarter in three years as a result of new product introductions and major efficiency gains. Pressure on Coatings margins continued, although the impact of raw materials costs was increasingly offset by successful price increases. Market conditions in Europe were difficult; Asia continues to be a growth story. Chemicals was impacted by higher energy prices and incidentals such as the strike in the Finnish pulp industry and a scheduled stop in Rotterdam. The Chemicals divestment program is on track.” Excluding one-off items and divestments, operating income declined Euro 31 million or 9%, to Euro 312 million compared to Euro 343 million in 2004. This includes the consequence of the new collective labor agreement reached with the Dutch unions, which resulted in an extra charge of some Euro 25 million in the quarter, affecting all units. Chemicals’ second-quarter revenues of Euro 963 million were 2% higher than last year. With more uncertain economic conditions in the various regions and markets, volumes were flat, while prices were up 3% from last year. Currency translation had a negative effect of 1%. The EBIT margin was 8.0% compared to 7.3% in 2004. The operational performance of the Chemicals activities decreased Euro 11 million, mainly reflecting the impact from higher energy and raw material prices–affecting almost all businesses–and the effects of some incidents. Base Chemicals was affected by a scheduled maintenance stop at the Rotterdam site, while Pulp and Paper Chemicals felt the impact of a two-month strike in the pulp and paper industry in Finland. Mr. Frohn: “Clearly there are stronger headwinds from energy and raw materials prices this quarter and sluggish economic conditions have not helped. Looking beyond these factors, and the incidentals, the strategy to focus on five new chemicals platforms is in place, the underlying businesses are focused on their performance roadmaps and divestments are on track.”