Evonik Q1 net income falls 38% on PV asset impairments

11 May 2012 14:56  [Source: ICIS news]

LONDON (ICIS)--Evonik’s first-quarter net income fell 38% year on year to €269m ($349m), mainly because of asset impairments in photovoltaics and an unfavourable comparison with a strong 2011 first quarter, but the company’s underlying operating performance was still good, the Germany-based specialty chemicals major said on Friday.

Evonik recorded asset impairment losses because of tough competition in the photovoltaic industry, as well as restructuring expenses, it said.

In addition, the year-earlier comparison quarter included a gain on put and call options on remaining shares in an energy business that Evonik partially divested.

After excluding these non-operating effects from both quarters, Evonik’s adjusted first-quarter net income was €322m, down 9% from €364m, with the decline mainly due to the divestment of a carbon black business, the company said.

First-quarter sales fell 8% year on year to €3.46bn, because of the carbon black divestment.

Adjusted earnings before interest and tax (EBIT) for the three months ended 31 March were €533m, down 12% from €604m in the 2011 first quarter.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) were down 10% to €692m. The EBITDA margin was 20.0%, compared with 20.5% in the 2011 first quarter.

Evonik said that its first-quarter operating performance was still good, even though it not match “the excellent performance in first quarter of 2011.”

($1 = €0.77)

By: Stefan Baumgarten
+1 713 525 2653

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