Evonik raises outlook for the year following another strong quarterly result
Key data on Q2 2015:
• Sales grew 8 percent to €3.5 billion; pleasing volume growth and selling prices up overall year-on-year
• Adjusted EBITDA above strong first quarter at €661 million
• All three chemical segments posted better results than in the first quarter
• Adjusted EBITDA margin at a very good level of 18.8 percent
• Adjusted net income rose 70 percent to €307 million
Key data on H1 2015:
• Considerable improvement in adjusted EBITDA to €1.3 billion
• Three-quarters of the 22 business lines posted higher earnings than in the prior-year period
• Outlook for 2015 raised: sales expected to be around €13.5 billion (2014: €12.9 billion), with adjusted EBITDA around €2.4 billion
(2014: €1.9 billion)
Essen. "Evonik has posted another strong quarterly result," said Klaus Engel, Chairman of the Executive Board of Evonik Industries AG, today, when the Group presented its key financial data for the second quarter and first half of 2015. "The successful business trend continued in the second quarter. It is especially pleasing to report that all three chemical segments improved their results further compared with the already very good first quarter.”
At Group level as well, sales and adjusted EBITDA rose further compared with the first quarter of 2015 and were well above the prior-year figures. Global demand for Evonik's products was good and volumes increased further compared with the second quarter of 2014. In view of the continued strong business performance, Evonik is raising its outlook for the full year.
Evonik Group: key data for Q2/H1
Sales grew 8 percent to €3,519 million in the second quarter of 2015, and also by 8 percent to €6,944 million in the first six months of the year. Adjusted EBITDA increased by 40 percent to €661 million in the second quarter, and by 40 percent to €1,311 million in the first six months. This was principally due to the sustained good volume trend, partly as a result of the new capacity, and to higher selling prices and slightly lower raw material costs. The adjusted EBITDA margin rose to a very good level of 18.9 percent in the first six months (H1 2014: 14.5 percent). Adjusted net income, which reflects the development of operating earnings, increased by 70 percent to €307 million in the second quarter, and by 67 percent to €627 million in the first six months.
Outlook for the year raised again
In view of the continued strong business trend, Evonik has raised its outlook for fiscal 2015 again: The company now expects to report sales of around €13.5 billion (2014: €12.9 billion) and adjusted EBITDA of around €2.4 billion (2014: €1,882 million). At the start of the fiscal year, it had assumed a slight increase in sales and earnings. Following the successful first quarter, Evonik raised its guidance for adjusted EBITDA to at least €2.2 billion.
In the Nutrition & Care segment sales grew 27 percent to €1,248 million in the second quarter of 2015 (Q2 2014: €983 million), thanks to higher selling prices and positive currency effects. Adjusted EBITDA more than doubled to €381 million (Q2 2014: €186 million), driven by the improvement in prices and lower raw material costs. The adjusted EBITDA margin was excellent at 30.5 percent.
The Resource Efficiency segment registered stable selling prices and higher demand for its products in the second quarter. Sales rose 6 percent to €1,110 million, partly as a result of positive currency effects (Q2 2014: €1,043 million). Adjusted EBITDA improved 12 percent to €254 million (Q2 2014: €226 million) as a result of high capacity utilization and a slight drop in raw material prices. The adjusted EBITDA margin improved to a very good 22.9 percent.
In the Performance Materials segment, sales dropped 4 percent to
€938 million in the second quarter. This was principally caused by persistently low selling prices. The reduction was checked by an upturn in volumes and positive currency effects. Adjusted EBITDA was €82 million, almost unchanged from the prior-year period (€83 million), partly due to lower raw material costs. The adjusted EBITDA margin was 8.7 percent, up from 8.5 percent in the second quarter of 2014.
Evonik, the creative industrial group from Germany, is one of the world leaders
in specialty chemicals. Profitable growth and a sustained increase in the value of the company form the heart of Evonik’s corporate strategy. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik is active in over 100 countries around the world. In fiscal 2014 more than 33,000 employees generated sales of around €12.9 billion and an operating profit (adjusted EBITDA) of about €1.9 billion.
Evonik Industries has been producing specialty chemical products in the Greater China region (Mainland China, Hong Kong and Taiwan) since the late 1970’s; with wide-ranging trading relations already in place prior to this in the region. Evonik regards Greater China as one of the driving forces of the global economy and we consequently endeavour to grow our business in the region. The company now has around 3,000 employees in the Greater China region, the regional sales reached over €1.1 billion in 2014.
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.