(Reuters) -Dutch paints and coatings maker Akzo Nobel reported on Wednesday weaker-than-expected quarterly core earnings as high costs of raw materials continued to weigh on the market.
Chemical makers such as Akzo Nobel and PPG Industries have been hit by rising raw material costs due to strong demand and supply chain issues.
Amsterdam-based Akzo Nobel reported fourth-quarter adjusted operating income of 209 million euros ($238.72 million), missing analysts’ 212.5 million euro forecast.
The group, which increased pricing by 12.5%, said raw material and other variable costs increased by 325 million euros in the fourth quarter.
However, Chief Executive Officer Thierry Vanlancker said in a statement that the group was on track to offset raw material inflation by the first quarter.
Akzo Nobel confirmed its guidance for 2023 earnings before interest, taxes, depreciation and amortisation (EBITDA) of 2 billion euros.
($1 = 0.8755 euros)
(Reporting by Anait Miridzhanian; Editing by Kim Coghill and Subhranshu Sahu)
