Evonik Q4 net income rises 86% to €276m despite sales fall

12 March 2013 10:51  [Source: ICIS news]

LONDON (ICIS)--Evonik Industries’ 2012 fourth-quarter net income rose 86% year on year to €276m ($358m) despite a fall in sales “due to tax effects”, the Germany-based specialty chemicals major said on Tuesday.

Group sales for the three months ended 31 December slipped by 2% year on year to €3.27bn “in the wake of a drop in selling prices but slightly higher volumes”, the company added.

Evonik said: “The economic slowdown in the fourth quarter of 2012 and destocking by customers impacted Evonik's business performance.”

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter fell 6% to €492m, while adjusted earnings before interest and tax (EBIT or operating profit) dropped 3% to €336m.

“The adjusted EBITDA margin was 15.0%, slightly below the level reported for the fourth quarter of 2011 (15.7%),” Evonik added.

Net income for the 12 months of 2012 was €1.16bn, up by 15% from 2011, although full-year sales fell by 6% to €13.6bn, which is mainly due to the divestment of the group’s carbon black business in July 2011.

Evonik’s organic sales growth weakened slightly in the second half of the year. Although selling prices were slightly higher (+1%), 2012 organic sales slipped slightly by 1% as a result of a 2% decline in volumes partly because of a volume shortfall following an explosion at its cyclododecatriene (CDT) plant at the Marl chemical park, Germany, in April 2012.

Adjusted EBITDA in 2012 declined by 6% to €2.59bn, mainly because the prior-year figure contains earnings from the carbon black business for the first seven months. Accordingly, adjusted EBIT dropped 7% to €1.95bn.

Chairman Klaus Engel said: “Operationally, in 2012, Evonik was able to build on the record earnings achieved in 2011, greatly increased investment and also stepped up the pace of innovation."

With reference to the company's intention of seeking a stock market listing, Engel said: “We are ready for the next big step … The strong interest shown by investors in connection with the private placements confirms the success of our growth strategy.”

The return on capital employed (ROCE) in 2012 fell to 17.2% from 18.7% in 2011, mainly caused by higher capital expenditures (capex) which rose by 30% to €1.08bn.

($1 = €0.77)

By: Franco Capaldo
+44 (0)20 8652 3214

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