Evonik Q2 net profit jumps to €240m on rise in demand, capacity

11 August 2010 09:39  [Source: ICIS news]

LONDON (ICIS)--Evonik’s second-quarter net profit jumped to €240m ($316m), up from €89m during the same period last year, as there had been further improvements in its operating business, the Germany-based specialty chemicals maker said on Wednesday.

Operating profits surged 61% to €455m, driven mainly by growth in the chemicals and energy businesses.

The company said its chemicals business reported a 37% year-on-year rise in sales during the second quarter to €3.29bn, while earnings before interest, depreciation and amortisation (EBITDA) for the chemicals business rose 61% to €657m.

The chemicals business registered substantial volume growth in Asia, while demand picked up perceptibly in Europe and slightly in North America, Evonik said.

Overall operating profit rose on the back of a strong increase in demand and improved capacity utilisation, coupled with higher selling prices that offset a rise in raw material costs, Evonik said.

Evonik reported a year-on-year rise in sales of 31% to €4.03bn during the April-June period.

“Following a strong start to the year, there has been a further clear improvement in our operating business,” said Klaus Engel, chairman of Evonik's executive board.

“In view of the good business trend we are far more optimistic about the outlook for the year as a whole than we were at the start of the year and have raised our forecast again,” said Engel.

Evonik said it anticipates that sales growth for the year will be in the double-digit percentage range, while both EBITDA and earnings before interest and tax (EBIT) “are expected to be far higher than last year”.

($1 = €0.76)

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By: Hilde Ovrebekk
+44 20 8652 3214



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