Corporate | 5 May 2017 07:00
Evonik Industries AG: A Good Start to Fiscal 2017
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DGAP-News: Evonik Industries AG / Key word(s): Quarter Results
Key Financial Data:
– Adjusted EBITDA increases 8 percent to EUR612 million – Air Products specialty additives business is being successfully integrated – Outlook for the full year confirmed Essen . Evonik increased sales considerably by 19 percent to EUR3.68 billion in the first three months of 2017. The main growth drivers were higher demand, which boosted sales volumes, and the first-time inclusion of the Air Products specialty additives business. “The successful start to the year shows that we are on the right track with our growth strategy,” said Klaus Engel, Chairman of the Executive Board. “The combination of organic growth and strategic acquisitions has strengthened the company. We are on the road to becoming less vulnerable to economic cycles and having a more balanced portfolio. Demand for our specialty chemicals such as silica, coating additives and pharmaceutical ingredients boosted quarterly earnings.”
Adjusted EBITDA rose 8 percent to EUR612 million in the first quarter driven by improved results in the Resource Efficiency and Performance Materials segments. Earnings at Nutrition & Care were significantly below the prior year period mainly because of lower prices for animal nutrition products.
The specialty additives business acquired from Air Products at the beginning of the year is being integrated successfully and smoothly. The company is still on track to achieve its planned synergies of about EUR70 million by 2020. The acquisition of the silica business of U.S. company J. M. Huber is progressing well and Evonik aims to close the purchase in the second half of the year. The company’s net financial debt amounted to EUR2.3 billion at the end of the first quarter after payment for the Air Products specialty additives business. “Evonik still has a solid financial position after the biggest acquisition in the company’s history,” said Chief Financial Officer Ute Wolf. “We are within the framework of a solid investment-grade rating.”
Segment Performance
Nutrition & Care: Sales increased 7 percent to EUR1.12 billion. Results were boosted by the inclusion of the business acquired from Air Products as well as a considerable increase in sales volumes. Countering those were selling prices, which were significantly below the prior year. Adjusted EBITDA fell 35 percent to EUR189 million at the segment. Performance Materials: Sales gained 26 percent to EUR972 million with adjusted EBITDA more than doubling to EUR159 million. Healthy demand from industries such as automotive and construction as well as a tight supply situation in the market, especially for butadiene and MMA (methyl methacrylate), drove up prices and volumes.
Company information
Evonik is active in over 100 countries around the world with more than 35,000 employees. In fiscal 2016 the enterprise generated sales of around EUR12.7 billion and an operating profit (adjusted EBITDA) of about EUR2.165 billion.
Disclaimer
Contact: Tim Lange Head of Investor Relations Phone +49 201 177-3150 tim.lange@evonik.com
Evonik Industries AG
Supervisory Board
Registered Office is Essen
05.05.2017 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
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| Language: | English |
| Company: | Evonik Industries AG |
| Rellinghauser Straße 1-11 | |
| 45128 Essen | |
| Germany | |
| Phone: | +49 (0) 201 177-01 |
| Fax: | +49 (0) 201 177-3475 |
| E-mail: | investor-relations@evonik.com |
| Internet: | www.evonik.com |
| ISIN: | DE000EVNK013, XS0911405784 |
| WKN: | EVNK01, A1TM7T |
| Indices: | MDAX |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; Luxemburg |
| End of News | DGAP News Service |