08.05.16
Evonik reports that demand for its products rose worldwide in the first half of this year.
Evonik registered considerable volume growth in the first six months of 2016, mainly as a result of growth in the second quarter. Despite the higher volumes, Group sales declined to €6,363 million, a drop of 8% compared with the first half of 2015, principally because lower raw material costs were passed on to customers. Adjusted EBITDA was also below the exceptionally strong prior-period figure at €1,150 million. Evonik once again posted a very good adjusted EBITDA margin of 18.1% in the first half of 2016.
“We were able to increase volumes in persistently challenging business conditions,” said Klaus Engel, Chairman of the Executive Board of Evonik Industries. “We are now confident that over the full year we will deliver adjusted EBITDA in the upper half of the anticipated range of €2.0 to €2.2 billion.”
Adjusted EBIT fell 18% to €795 million in the first six months. Adjusted net income declined 20% to €501 million. Net income was €405 million, down 40% from the high prior-year level, which contained the proceeds from the divestment of the stake in Vivawest.
Despite the lower operating result, Evonik’s free cash flow of €208 million was higher than in the first half of 2015 (€166 million). This was due, among others, to a considerable reduction in net working capital.
In the Nutrition & Care segment, lower selling prices accompanied by almost unchanged volumes resulted in a drop in both sales and earnings. In the Resource Efficiency segment higher volumes increased sales and earnings. Higher volumes and lower raw material prices improved earnings in the Performance Materials segment despite a reduction in selling prices.
Evonik still expects to report slightly lower sales in 2016 (2015: €13.5 billion). The company is confident that it can realize adjusted EBITDA in the upper half of the anticipated range of €2.0 to €2.2 billion.
In the second quarter of 2016, Group sales dropped 7% year-on-year to €3,258 million. While volumes increased in all three chemical segments, the decline in sales was principally attributable to the fact that selling prices were lower than in the prior-year period. Adjusted EBITDA was €585 million, 11% lower than in the exceptionally strong prior-year quarter.
The adjusted EBITDA margin was very good at 18.0 percent. Adjusted EBIT fell 16% to €406 million. Adjusted net income dropped 20% to €246 million. Overall, net income was €165 million. That was below the prior-period level of €418 million, which contained the proceeds from the divestment of the stake in Vivawest.
In the Performance Materials segment, sales dropped 12% to €829 million in the second quarter, principally owing to lower selling prices as a result of the reduction in raw material prices. By contrast, volumes rose considerably thanks to good demand. Adjusted EBITDA rose by 28% to €105 million. This was principally due to a rise in volumes, improved raw material efficiency and systematic cost management. The adjusted EBITDA margin was 12.7 percent, up from 8.7% in the second quarter of 2015.
Sales in the Performance Materials segment fell 10% to €1,601 million in the first six months of 2016. With volumes up, the decline was caused by the oil-driven drop in selling prices. Adjusted EBITDA improved 10% to €169 million. The adjusted EBITDA margin improved to 10.6 percent.
Evonik registered considerable volume growth in the first six months of 2016, mainly as a result of growth in the second quarter. Despite the higher volumes, Group sales declined to €6,363 million, a drop of 8% compared with the first half of 2015, principally because lower raw material costs were passed on to customers. Adjusted EBITDA was also below the exceptionally strong prior-period figure at €1,150 million. Evonik once again posted a very good adjusted EBITDA margin of 18.1% in the first half of 2016.
“We were able to increase volumes in persistently challenging business conditions,” said Klaus Engel, Chairman of the Executive Board of Evonik Industries. “We are now confident that over the full year we will deliver adjusted EBITDA in the upper half of the anticipated range of €2.0 to €2.2 billion.”
Adjusted EBIT fell 18% to €795 million in the first six months. Adjusted net income declined 20% to €501 million. Net income was €405 million, down 40% from the high prior-year level, which contained the proceeds from the divestment of the stake in Vivawest.
Despite the lower operating result, Evonik’s free cash flow of €208 million was higher than in the first half of 2015 (€166 million). This was due, among others, to a considerable reduction in net working capital.
In the Nutrition & Care segment, lower selling prices accompanied by almost unchanged volumes resulted in a drop in both sales and earnings. In the Resource Efficiency segment higher volumes increased sales and earnings. Higher volumes and lower raw material prices improved earnings in the Performance Materials segment despite a reduction in selling prices.
Evonik still expects to report slightly lower sales in 2016 (2015: €13.5 billion). The company is confident that it can realize adjusted EBITDA in the upper half of the anticipated range of €2.0 to €2.2 billion.
In the second quarter of 2016, Group sales dropped 7% year-on-year to €3,258 million. While volumes increased in all three chemical segments, the decline in sales was principally attributable to the fact that selling prices were lower than in the prior-year period. Adjusted EBITDA was €585 million, 11% lower than in the exceptionally strong prior-year quarter.
The adjusted EBITDA margin was very good at 18.0 percent. Adjusted EBIT fell 16% to €406 million. Adjusted net income dropped 20% to €246 million. Overall, net income was €165 million. That was below the prior-period level of €418 million, which contained the proceeds from the divestment of the stake in Vivawest.
In the Performance Materials segment, sales dropped 12% to €829 million in the second quarter, principally owing to lower selling prices as a result of the reduction in raw material prices. By contrast, volumes rose considerably thanks to good demand. Adjusted EBITDA rose by 28% to €105 million. This was principally due to a rise in volumes, improved raw material efficiency and systematic cost management. The adjusted EBITDA margin was 12.7 percent, up from 8.7% in the second quarter of 2015.
Sales in the Performance Materials segment fell 10% to €1,601 million in the first six months of 2016. With volumes up, the decline was caused by the oil-driven drop in selling prices. Adjusted EBITDA improved 10% to €169 million. The adjusted EBITDA margin improved to 10.6 percent.
