Akzo Nobel's 2005 net income improves.

Akzo Nobel has reported net income of 961 million [euro] for the full-year 2005, slightly ahead of the 2004 figure of 945 million [euro]. Effective implementation of the company's global strategy is driving growth in all units, with revenues from present operations up six percent, the company said.

Akzo's Coatings unit experienced a good recovery after a challenging start. Coatings revenues grew by six percent in 2005 as the business achieved five percent average price increases for the year. Growth was mainly fueled by expansion in the emerging markets of Asia-Pacific, Eastern Europe and the Middle East. The company also improved its portfolio through selective acquisitions.

Operating income declined five percent in 2005 to 384 million [euro], mainly due to steeply rising raw material prices and difficult economic conditions in mature markets, especially in Western Europe. These were offset in the second half of the year by price increases, cost measures and growth initiatives. At the end of 2005, emerging markets represented 34% of worldwide sales.