€2.5bn written off AkzoNobel paint business

Paint giant AkzoNobel has written down the assets of its paint business by €2.5 billion (£1.6 billion) in its third quarter results, leading to a net loss for company. The ‘intangible assets’ of the company fell by a third, from $7.4 billion (as of 31 December 2011) to $4.9 billion. €1.9 billion of the impairment was assigned to the European part of the decorative paints business, with €400 million to the North American part and €200 million to the South American part. The company has been affected by the on-going economic instability in Europe, which it said contributed to its 3% drop in sales volumes compared with the same period last year.

Meanwhile, the company sought to reassure the market about the health of chief executive Ton Büchner, who has been on leave with a fatigue related sickness since September. It said that it was expecting a full recovery and for Büchner to return around the end of the year.