Akzo Nobel Sees Earnings Decline

Akzo Nobel of the Netherlands experienced a 4.4% decline in net income in the second quarter of 1996 to 367 million guilders ($220.6 million). For the first six months of the year net income was 699 million guilders, down 11.4%. Earnings per share were 9.83 guilders, also down 11.4%.

The group said that sales were 5.6 billion guilders in the second quarter, up 4%. The increase breaks down into 5% positive currency translation and 1% higher average selling prices on the one hand, and 2% lower volumes on the other. For the six-month period sales were 11.3 billion guilders, ahead 2.4%.

Akzo said that its pharmaceutical division's results exceeded last year's second-quarter level due to higher volumes of most business units. Volumes at Organon were affected by the negative impact of the scientific debate on third-generation oral contraceptives. Also, the division was affected by the cost of new product introductions.