Friday, 4 August 2017

Evonik grew sales to EUR7.3 billion in the first six months of 2017. Three factors have contributed to this rise of 15 percent compared with the first half of 2016.

Evonik on target after the first half of 2017. Source: Evonik

Evonik on target after the first half of 2017. Source: Evonik

 

It was partly due to the first-time consolidation of the specialty additives business of the US company Air Products. Evonik acquired this business in January. Other reasons for the increase in sales were the significant rise in demand and slightly higher selling prices.

Adjusted EBITDA rose 8 percent

"Our business development is on target," said Christian Kullmann, Chairman of the Executive Board. "Moreover, we are reaping the first benefits of the biggest acquisition in our history." Adjusted EBITDA rose 8 percent to EUR1.25 billion in the first six months, driven principally by better results in the Resource Efficiency and Performance Materials segments. Earnings in the Nutrition & Care segment were lower than in the prior-year period, mainly because of lower prices for feed additives.

Integration proceeds smoothly

Net income slipped 3 percent to EUR394 million, principally as a result of one-time expenses in connection with the acquisition of the Air Products specialty additives business. Integration of these units, which were acquired at the start of the year, is proceeding smoothly and successfully. Initial synergies were leveraged in the second quarter. Good progress is also being made with the acquisition of the silica business of US company J.M. Huber. Evonik expects to close this transaction as planned in the second half of 2017.

Outlook confirmed

Evonik confirmed its forecast to increase both sales and operating profit for the full year 2017. Adjusted EBITDA is still expected to grow to between EUR2.2 billion and EUR2.4 billion (2016: EUR2.165 billion).

Segment Performance Materials

Sales grew 18 percent to EUR1.89 billion in the first six months, and adjusted EBITDA almost doubled to EUR328 million. High demand and continued shortages in the supply chain, especially for butadiene and methylmethacrylate, resulted in higher selling prices. Successful implementation of restructuring measures also had a positive impact.