Evonik maintains outlook, despite Q3 decline in sales - CEO

09 November 2012 14:50  [Source: ICIS news]

LONDON (ICIS)--Evonik is “still doing well” in difficult global economic conditions and will retain its full-year 2012 sales and profit outlook - despite a 6% decline in third-quarter sales, the CEO of the Germany-based specialty chemicals major said on Friday.

Evonik expects its full-year 2012 full-year sales to be slightly higher than in 2011, with operating results in line with 2011, or slightly higher. The outlook excludes sales from the carbon black business Evonik divested last year.

“However, the global economic framework is challenging and demand has weakened since the summer, especially in Europe,” CEO Klaus Engel said in commenting on Evonik’s third-quarter results and outlook.

The slight slowdown in global economic growth is expected to continue in the current fourth quarter, Engel said.

Risks relating to the European sovereign debt crisis are continuing unabated and could adversely affect the economic situation in Europe, he added.

Also, growth prospects in some emerging markets have deteriorated. Overall, Evonik expects global economic growth to be lower than in 2011, he said.

Engel also pointed to the Evonik’s cost savings programme.

"We will continue to systematically work towards our goal of sustained annual cost savings of around €500m ($641m) by the end of 2016,” he said.

“Our ambitious growth targets and the combination of strict cost management and a further improvement in efficiency are two sides of the same coin," he said.

Evonik’s third-quarter sales fell 6% year on year to €3.4bn, and nine-month sales were down 8% year on year to €10.4bn – mainly because of sales lost from the divested carbon black business, the company said earlier on Friday.

($1 = €0.78)

Additional reporting by Nurluqman Suratman in Singapore

By: Stefan Baumgarten
+1 713 525 2653

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