Akzo Nobel 1Q profit falls on costs of acquisiiton

Its profit fell to 118 million euros ($183 million) in the January-March period, down from 246 million euros in the same period last year. Sales rose 40 percent to 3.51 billion euros ($5.43 billion), the Amsterdam-based company said.

Akzo said it had "underlying growth in local currencies in most of its businesses, reaching double-digit levels in emerging markets." The company's margins on decorative paints also improved, despite weak U.S. market conditions, it said.

Increased costs for raw materials were being passed on to customers, the company said, adding that it also was cutting operation expenses.

Akzo closed the ICI purchase on Jan. 2 -one of three major transactions in a 12-month period. Last year it sold its pharmaceuticals operations to U.S. company Schering-Plough Corp. for around $14.5 billion, and on April 3 sold ICI's adhesives businesses to Germany's Henkel AG for $6.2 billion.

Its shares fell 1.8 percent to 52.00 euros ($80.44) in trading in Amsterdam.