Evonik remains confident on 2011 outlook despite financial market risks

10 August 2011 17:33  [Source: ICIS news]

LONDON (ICIS)--Evonik Industries remains confident over the outlook for the remainder of 2011, despite financial market uncertainty, the Germany-based specialty chemicals major said on Wednesday.

“Our chemicals business is booming,” CEO Klaus Engel said. “Our business development gives us every reason for confidence."

Following Evonik’s best-ever first-half operating result, the company predicts continued strong demand and selling prices. It expects “a considerable rise in sales” over the full year, Engel said. Despite increased raw material costs, both earnings before interest, tax, depreciation and amortisation (EBITDA) and earnings before interest and tax (EBIT) are expected to be “perceptibly higher” than in 2010, he added.

However, the general economic outlook for 2011 remains uncertain as a result of current financial risks, the company noted, referring to financial market turmoil in the US and the EU.

Evonik’s first-half 2011 EBITDA rose 20.0% year on year to €1.5bn ($2.1bn), driven by strong volumes and margins. The company's first-half EBITDA margin was 19.8%, a 19.3% increase from the first half of 2010.

Evonik’s sales for the six months ended 30 June rose 17.0% year on year to €7.58bn.

Evonik’s sales rose 13% year on year to €3.82bn in the three months to June. EBITDA for the period was up 11% year on year to €726m, from €656m in 2010.

Evonik did not disclose timelines for its planned initial public offering (IPO). Engel said in March that an IPO could be possible within 15 months.

A previous effort launch a public offering in 2008 was called off amid difficult capital market conditions. Instead of listing, Evonik's majority owner, Hermany's RAG-Stiftung, sold a 25.01% stake in the specialty chemicals major to private equity firm CVC for €2.4bn.

($1 = €0.70)

For more on Evonik and other producers visit ICIS company intelligence

By: Stefan Baumgarten
+1 713 525 2653

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