UpdateGermany’s Evonik Q1 net profit rises 7%; sales dip 4%

08 May 2013 11:01  [Source: ICIS news]

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SINGAPORE (ICIS)--Evonik posted a 7% year-on-year increase in its first-quarter net profit to €289m ($220m), mainly on lower interest and income tax expenses, the German specialty chemicals group said on Wednesday.

Sales for the quarter fell by 4% year on year to €3.26bn because of lower selling prices and higher raw material costs. Earnings before interest, tax, depreciation and amortisation (EBITDA), adjusted for portfolio changes, fell by 10% to €589m.

Adjusted EBITDA for the Specialty Materials segment, which produces polymer materials and intermediates, was hardest hit in the quarter, falling by 15% to €182m.

Consumer, Health & Nutrition segment profits fell 5% to €274m while Resource Efficiency segment profits were 2% higher at €172m. The Resource Efficiency or energy-related businesses include inorganic materials and coatings & adhesives business units.

"Evonik got off to a somewhat moderate start to 2013 compared with the very strong first quarter of 2012,” CEO Klaus Engel said. “However, we expect business to pick up perceptibly in the second half of the year, partly because of a recovery in the global economy and partly because new production capacities will come on stream.”

The company expects higher sales in 2013 and an operating result in-line with last year.

However, Engel warned that the global economic environment will remain “very challenging, especially in the coming months”.

Evonik reclassified its Real Estate segment as a discontinued operation in March this year and plans to deconsolidate the business during 2013.

Some 14.5% of the company was floated in a stock market listing at the end of April.

($1 = €0.76)

By: Yaw Min Jie
+65 6780 4327

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