Akzo Nobel Pharma Div Sees Good 1996 Results, Despite Difficulties

Dutch group Akzo Nobel reported a slight improvement in 1996 net income,up from 1.31 billion guilders to 1.32 billion guilders ($690 million). Sales last year rose 6% to 22.4 billion guilders, largely due to a 3% positive currency translation impact.

Pharmaceuticals did better in 1995, the company says, despite extra costs for new product launches and feeling the full impact of the previous year's scientific dispute on oral contraceptives (Marketletters passim). Pharmaceutical sales increased 5% to 3.77 billion guilders. Average selling prices were 2% higher and currency translation effects accounted for 2% of growth, while acquisitions caused a 1% increase in turnover. Volumes were practically the same as in 1995, the company notes.

Operating income increased 6% to 795 million guilders. Lower results for oral contraceptives and the extra cost of new product launches caused drug subsidiary Organon's results to remain below those of 1995. However, this decline was more than offset by higher contributions from the other pharmaceutical businesses.