Monday 23 July 2018

Evonik sales reach $8.61bn in H1

BERLIN, August 8, 2017

Evonik, a leading German speciality chemicals company, revealed that its sales grew to reach €7.3 billion ($8.61 billion) in the first six months of 2017, a rise of 15 per cent in comparison to the first half of 2016.

The rise was partly due to the first-time consolidation of the specialty additives business of the US company Air Products. Evonik acquired this business in January, said a statement from the company.

Other reasons for the increase in sales were the significant rise in demand and slightly higher selling prices, it said.

Christian Kullmann, chairman of the executive board, said: “Our business development is on target. Moreover, we are reaping the first benefits of the biggest acquisition in our history.”
Adjusted EBITDA rose 8 per cent to €1.25 billion ($1.475 billion) in the first six months, driven principally by better results in the resource efficiency and performance materials segments.

Earnings in the nutrition and care segment were lower than in the prior-year period, mainly because of lower prices for feed additives.
Adjusted net income increased 10 per cent to €549 million ($648.1 million), while adjusted earnings per share improved to €1.18 ($1.39). Net income slipped 3 per cent to €394 million ($465.3 million), principally as a result of one-time expenses in connection with the acquisition of the Air Products specialty additives business.

Integration of these units, which were acquired at the start of the year, is proceeding smoothly and successfully. Initial synergies were leveraged in the second quarter.

Good progress is also being made with the acquisition of the silica business of US company J M Huber. Evonik expects to close this transaction as planned in the second half of 2017, said a statement.

The company's net financial debt was €3.09 billion ($3.649 million) as of June 30, 2017. At the start of July, Evonik issued a hybrid bond for the first time. With a coupon of 2.125 per cent, this was the cheapest ever hybrid bond issued by an industrial company. The proceeds will be used to finance the acquisition of Huber's silica business.

“The conditions achieved are further evidence that the capital markets have enormous confidence in our financial position,” said chief financial officer Ute Wolf. “We have a solid investment grade rating. And we want to keep that.”

Evonik confirmed its forecast to increase both sales and operating profit for the full year 2017.

The company’s adjusted EBITDA is still expected to grow to between €2.2 billion ($2.59 billion) and €2.4 billion ($2.83 billion) [2016: €2.165 billion ($2.55 billion)], it stated. – TradeArabia News Service

Tags: | Sales | H1 | Evonik |

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