Evonik’s chemical business Q3 EBITDA increases 16% to €505m

16 November 2009 10:26  [Source: ICIS news]

EvonikRECAST: In order to clarify lead

LONDON (ICIS news)--Evonik Industries' chemicals business posted a 16% year-on-year increase in third-quarter earnings before interest, tax, depreciation and amortisation (EBITDA) to €505m ($753.7m), despite a drop in sales, due to cost cutting, the German specialty chemicals major said on Monday.

The group’s chemicals business reported a 16% drop in third quarter sales to €2.6bn compared with same period a year before due to the global economic crisis.

Evonik said the chemicals business had reported an upturn in demand, especially in Asia and Europe, compared with the first half of 2009, although volumes had been still below last year’s level.

Improvements in Evonik's chemical arm helped the company's overall third-quarter group net income to more than double to $168m compared with the same period last year, despite a 20% year-on-year fall in sales to €3.3bn.

“Our efforts to lower costs and raise efficiency are having an effect. We are on course despite rough seas,” said Klaus Engel, chairman of Evonik Industries’ executive board.

Engel said he had been satisfied with the progress of Evonik’s “on track” efficiency improvement programme, which had aimed to achieve a substantial and sustained improvement in the company’s competitiveness.

“We will exceed our goal of saving €300m this year alone,” he said.

In its outlook, Evonik said it would remain cautious and expected a substantial drop in full-year sales in 2009 as a result of the reduction in chemicals volumes caused by the economic situation.

“The group expects a slight upturn in some chemicals business lines but does not yet anticipate a sound and broadly based recovery,” the group said.

($1 = €0.67)

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