DGAP-News: Evonik Industries AG: Evonik made a solid start to 2019
DGAP-News: Evonik Industries AG / Key word(s): Quarter Results
Evonik Industries AG: Evonik made a solid start to 2019
07.05.2019 / 06:45
The issuer is solely responsible for the content of this announcement.
Key financial data:
January 1-March 31, 2019 / First quarter of 2019
Evonik made a solid start to 2019
- Sales grow 1 percent to EUR3.29 billion
- Adjusted EBITDA declines slightly to EUR539 million
- Free cash flow improves significantly to EUR159 million
- Outlook for 2019 revised upwards: adjusted EBITDA at least stable
Essen. Evonik made a solid start to the new year. Sales in the first quarter rose 1 percent to EUR3.29 billion compared to the prior-year quarter. Adjusted EBITDA declined 3 percent to EUR539 million.
"In a weakening global economy we were able to hold our ground in terms of sales and earnings," said Christian Kullmann, chairman of the executive board. "With free cash flow, we were even able to post a significant gain. Our portfolio is now more robust in the face of macroeconomic trends than it was in the past. The divestment of our methacrylates business has contributed to that."
One-time start-up costs for new production facilities and a temporary bottleneck in the supply of raw materials in the Performance Materials segment contributed to the drop in adjusted EBITDA. Correspondingly, the adjusted EBITDA margin slipped from 17.1 percent to 16.4 percent. Adjusted net income fell 5 percent to EUR249 million with adjusted earnings per share at EUR0.53.
Free cash flow improved significantly year-on-year, increasing by EUR109 million to EUR159 million. This was mostly due to less build up of net working capital and lower pension payments.
As a result of the agreed sale of the methacrylates business, the outlook for continuing operations has been revised upwards. Evonik now expects adjusted EBITDA and sales to be at least on
the same level as last year. Earnings from the planned acquisition of the US company PeroxyChem are not included in the revised guidance. In the year 2018, the continued operations posted an adjusted EBITDA of EUR2.15 billion and sales of EUR13.3 billion.
Significant progress with the company-wide cost-saving program also made a contribution to earnings. More than half of the 1,000 job cuts will have been achieved by the end of the year.
Resource Efficiency: The successful business development in this segment continued in the first quarter of 2019. Sales rose 3 percent to EUR1,399 million. This was principally due to higher selling prices, whereas volumes were slightly lower than in the prior-year period. Demand for high-performance polymers (polyamide 12) and membranes remained high, so higher prices had a positive impact, resulting in a correspondingly strong rise in sales. Higher sales were also reported by crosslinkers as a result of high demand, especially for composite applications for the wind energy market, and by silica, which benefited from a pleasing trend in rubber and tire applications. Despite start-up costs for the new silica plant in the USA, adjusted EBITDA improved 2 percent to EUR324 million.
Nutrition & Care: Sales increased 3 percent to EUR1,149 million in the first quarter of 2019. This was mainly due to an increase in sales volumes, while selling prices declined. Sales of essential amino acids for animal nutrition dropped slightly, caused by lower selling prices. By contrast, volumes sold increased significantly. The care solutions business showed a pleasing development, benefiting from higher demand for specialty applications, for example, from the cosmetics industry. Adjusted EBITDA was EUR180 million, 14 percent lower than in the prior-year period, partly due to expenses in connection with the planned start-up of the new methionine facility in Singapore in mid-2019.
Performance Materials: In the first quarter of 2019, sales fell 7 percent, compared with the prior-year period, to EUR559 million as a result of lower volumes, declining prices, and negative currency effects. The development of performance intermediates (C4 chemicals) was adversely affected by restricted supply of raw materials caused by a supplier's technical problems and the lower price of naphtha. Sales therefore decreased. By contrast, the Functional Solutions business line generated higher sales. This business benefited principally from higher demand for alkoxides. Adjusted EBITDA at the segment declined 9 percent to EUR59 million.
 The methacrylates business has been moved to discontinued operations with handover expected in the third quarter.
Evonik is one of the world leaders in specialty chemicals. The focus on more specialty businesses, customer-oriented innovative prowess and a trustful and performance-oriented corporate culture form the heart of Evonik's corporate strategy. They are the lever for profitable growth and a sustained increase in the value of the company. Evonik benefits specifically from its customer proximity and leading market positions. Evonik is active in over 100 countries around the world. In fiscal 2018, the enterprise with more than 32,000 employees generated sales of EUR13.3 billion and an operating profit (adjusted EBITDA) of EUR2.15 billion from continuing operations.
In so far as forecasts or expectations are expressed in this press release or where our statements concern the future, these forecasts, expectations or statements may involve known or unknown risks and uncertainties. Actual results or developments may vary, depending on changes in the operating environment. Neither Evonik Industries AG nor its group companies assume an obligation to update the forecasts, expectations or statements contained in this release.
Head of Investor Relations
+49 201 177-3150
Evonik Industries AG
Rellinghauser Straße 1-11
Phone +49 201 177-01
Fax +49 201 177-3475
Bernd Tönjes, Chairman
Dr. Werner Müller, Honorary Chairman
Christian Kullmann, Chairman
Dr. Harald Schwager, Deputy Chairman
Registered Office is Essen
Register Court Essen Local Court
Commercial Registry B 19474
07.05.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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||Evonik Industries AG
||Rellinghauser Straße 1-11
||+49 (0) 201 177-01
||+49 (0) 201 177-3475
||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; Luxembourg Stock Exchange
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||DGAP News Service
Quelle: boersengefluester.de und Firmenangaben
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1 in Mio. Euro; 2 EBITDA = Ergebnis vor Zinsen, Steuern und Abschreibungen; 3 EBITDA in Relation zum Umsatz; 4 EBIT = Ergebnis vor Zinsen und Steuern; 5 EBIT in Relation zum Umsatz; 6 Jahresüberschuss (-fehlbetrag) in Relation zum Umsatz; 7 Cashflow aus der gewöhnlichen Geschäftstätigkeit; 8 in Euro; Quelle: boersengefluester.de
||Kurs in €
||Börsenwert in Mio. €
|Dividende '22 in €
||Dividende '23e in €
||Performance 52 Wochen