(Reuters) -Dutch paints and coatings maker Akzo Nobel reported on Thursday stronger-than-expected quarterly core earnings, as higher pricing helped offset high raw material costs.
“Through our vigorous pricing initiatives, we are in line with the unprecedented variable cost inflation that impacted our industry during the quarter,” Chief Executive Thierry Vanlancker said in a statement.
Makers of chemicals, such as Akzo Nobel and PPG Industries, have been hit by rising costs of raw material, because of supply chain issues and strong demand.
Akzo Nobel flagged “uncertainties” linked to sanctions on Russia, the resurgence of the coronavirus in China and supply chain constraints, but said it still expected raw material and other cost inflation to ease in the second half of this year.
Raw material and other variable costs increased 334 million euros ($361.86 million) over the corresponding period last year, the company said.
It reported adjusted operating income of 230 million euros ($249.18 million) for January-March, with revenue increasing 12% to 2.52 billion euros, both beating analysts’ forecasts.
(Reporting by Valentine Baldassari; Editing by Muralikumar Anantharaman)