Akzo’s NWC outflow really swelled as the company financed its customers and paid suppliers. The higher inventories fit into this picture, as higher raw material prices triggered a re-valuation. The top-line was characterised by lower volumes and higher prices to dampen the effects from higher raw material prices. Operating performance did not meet our already moderate expectations and failed to meet analysts’ estimates.
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NWC becomes an issue
Akzo’s NWC outflow really swelled as the company financed its customers and paid suppliers. The higher inventories fit into this picture, as higher raw material prices triggered a re-valuation. The top-line was characterised by lower volumes and higher prices to dampen the effects from higher raw material prices. Operating performance did not meet our already moderate expectations and failed to meet analysts’ estimates.