Evonik’s quarterly profit beats estimates on rising prices and currency effects


Aug 10 (Reuters) – German chemical group Evonik Industries (EVKn.DE) reported stronger-than-expected second-quarter core profit on Wednesday, helped by higher selling prices across all divisions and price effects. positive changes, and despite a slight decline volumes.

Evonik, which makes ingredients for products ranging from pet food and diapers to Pfizer/BioNTech’s COVID-19 vaccine, reported adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of 728 million euros ( $743 million) in the three months to June 30, up 12% year over year and above analysts’ forecast of $700 million in a survey provided by the company.

“We had a good first half… With respect to growing uncertainties, particularly on the energy side, we believe these challenges will prevail and may even accelerate in the second half,” the CEO said. Christian Kullmann in a statement. statement.

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German chemical companies, which rely heavily on Russian gas imports, are scrambling to prepare for further gas supply cuts in response to Western sanctions imposed following Russia’s invasion of Ukraine. Read more

Evonik said on Monday it was replacing up to 40% of natural gas at its German sites with alternative sources, including liquefied petroleum gas and coal, while the energy supply at its sites abroad was largely independent of Russian gas supply. Read more

The company raised its 2022 sales outlook to €17-18 billion from an earlier forecast of €15.5-16.5 billion.

It also said the upper bound of its adjusted EBITDA forecast of 2.5 to 2.6 billion euros was “well supported”.

Evonik’s free cash outflow was €239 million in the quarter compared to an inflow of €101 million last year, due to an accumulation of net working capital caused by higher prices raw materials and higher inventory levels. Analysts were expecting a cash outflow of 167 million euros.

Germany is Europe’s leading chemical producer.

($1 = 0.9793 euros)

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Reporting by Karol Badohal and Bartosz Dabrowski in Gdansk; edited by Milla Nissi

Our standards: The Thomson Reuters Trust Principles.

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