GoDubai
  
  
  
  
Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >>

 
  Share
Outlook for 2019 confirmed: Sales and adjusted EBITDA to remain at least stable
• Second-quarter sales and earnings below year-ago period
• Compared with the first quarter all three chemical segments increase earnings 
 
 
Dubai, United Arab Emirates -  08, August 2019:    Evonik is sticking to its full-year outlook despite an increasingly gloomy economic environment. The company expects sales and adjusted EBITDA from continued operations to remain at least stable compared with last year. In 2018 Evonik generated - not including the divested Methacrylates business - sales of €13.3 billion and adjusted EBITDA of €2.15 billion.
 
In the second quarter of this year sales declined 3 percent to €3.31 billion compared with the prior-year quarter. While sales volumes fell because of the weaker economy, Evonik was able to keep prices largely stable. Adjusted EBITDA fell 8 percent to €566 million in the quarter. In comparison to the first quarter of 2019, all three of the company's chemical segments were able to improve their earnings. For the second half of the year Evonik expects a continued solid development.
 
“We are on track and confirm our forecast,” said Christian Kullmann, chairman of Evonik's executive board. “The cooling of world trade and an increasing weakness in major industries isn't making it easier. Still, we are confident for the remainder of the year.”
 
In the first half, free cash flow reached €95 million. That is more than double the amount in the first half of 2018 (€46 million).  So Evonik is on track to meet its target for a significantly higher free cash flow for the full year.
 
“Strategically we have taken a big step forward with focusing our portfolio on specialty chemicals,” said Kullmann. “We invest in areas with stable and attractive growth perspectives and divest cyclical businesses when the time is right. That makes Evonik less exposed to economic cycles.”
 
As well as the sale of the Methacrylates business to Advent International, the company has reached another milestone. On July 10, Veramaris, a joint venture between Evonik and Dutch company DSM, officially opened its production plant for omega-3 fatty acids needed for healthy salmon farming. A tangible earnings contribution from the project, which contributes to long-term sustainable animal nutrition and helps conserve biodiversity in the oceans, is expected from next year.
 
Segment Performance
 
Resource Efficiency: A weaker market environment for auto- and coatings-related businesses meant that sales at the segment declined 2 percent to €1.4 billion in the second quarter. Sales volumes at the Silica, Oil Additives and Coatings businesses were impacted by the economic weakness. The segment enjoyed higher demand for high performance polymers as well as for composite applications at the Crosslinkers business from the wind-energy market. Adjusted EBITDA dropped 9 percent to €325 million.
 
Nutrition & Care: Second-quarter sales decreased 5 percent to €1.31 billion at the segment. Demand for essential amino acids for animal nutrition remained high while selling prices were lower than the prior-year quarter. Adjusted EBITDA at the segment dropped 14 percent to €190 million on lower prices as well as ramp-up costs for the new methionine facility in Singapore. Areas such as Care Solutions or Health Care that are closer to the consumer have shown their stability in a cyclically weaker environment.
 
Performance Materials: Sales in the second quarter decreased
4 percent to €594 million. Development at Performance Intermediates was hurt by a lower oil price as well as slightly lower selling prices. In contrast, at Functional Solutions the alkoxides developed well. Adjusted EBITDA at the segment fell 4 percent to €76 million.



Posted by : GoDubai Editorial Team
Viewed 8211 times
Posted on : Thursday, August 8, 2019  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : UK: The power of credit impulse at work
Next Story : FireEye Identifies Prolific Chinese Cyber Threat Group
Email this article Print this article

Share this article with your friends and followers
NewsVine

Comments

Back to Top  
Most Viewed Press Release posted in the last 7 days
Korea's Number One Beauty Brand Innisfree All Set to Celebrate the Grand Opening...
6 Trends That Will Dominate Beauty in 2020 According to Foreo
Made in Italy: Top Picks from the Latest Deborah Milano Make-Up Range
How to Beat Pigmentation with DERMAdoctor
Introducing Zeitun Premium Face Care Collection
Emirates Post Issues Set of Commemorative Stamps for the New Logo for People of ...
Sephora: Are You Ready to Join the #SephoraSquad?
Rate Hawk is Live with Global Innovations Flagship Product TassPro and Itinerary
Spoil her this Mother's Day with gifts from Marks & Spencer
Achieve Gorgeous and Radiant Skin in Only 90 Seconds
Enjoy a Selection of Anti-Aging Products from Beauty Solutions
Cerruti 1881 - Special Product Launch for Mother's Day
Swatch X 007 – Introducing the New James Bond Collection and Limited Special Edition
Laloge X Ivanka Trump
Marks & Spencer, Britain's Best Loved Denim
Ferragamo Sapphire Collection
Tag Heuer Opens Boutique at Mall of the Emirates
Dubai Chamber Honours Top-performing Trading Companies
HRH the Prince of Wales Officially Opens the National Automotive Innovation Centre
Team Abu Dhabi Riders Grab Double Triumph On Dramatic Race Day in Kuwait
Dubai Customs Graduates 1st Batch of “Dubai Customs Leaders” Program
The Award-winning #burjumanfoodart Festival is Back by Popular Demand!
HH Sheikh Mansour bin Mohammed Visits Dubai Sports Council
Marks & Spencer Unveils its All New Menswear
Buyers Rush for Majid Al Futtaim's First ‘Elan' Townhouses at Tilal Al Ghaf
Etihad Airways to Operate Special Flights From Al Ain to Jeddah During Ramadan
Visit of Punjab Minister at Al Maya Stand @ Gulfood 2020
Mall of Oman Onboards a Host of Global Lifestyle, Fashion, and F&B Brands Ahead ...
A Game Changing, GCC First Initiative is Unveiled at Gulfood 2020: Oasis Water N...
Statement Stilettoes from Steve Madden
This Unbeatable Bundle Offer makes it the Best Time to Buy the King of 5G Smartp...
GEMS Global Innovation Showcase 2020 Sees 1,500 Student Innovators and Entrepren...
His Highness Sheikh Hamdan Bin Rashid Al Maktoum Opens Gulfood 2020
Al Wahda Mall Announces UAE Pro League Mobile Roadshow Activations
UAE Community Takes Millions of Steps in Solidarity With Children Who Walk Long ...
Dubai Cares Donates 2,000 Books to Wanna Read? Initiative to Instill the Habit o...
Bottled Water Industry Leaders Come Together to Form Gulf Bottled Water Associat...
Airlines and Posts Cooperate Globally for a Sustainable and Reliable Cross-borde...
“Planet Positive” is Tetra Pak's New Way of Doing Business
Upfield Unveils New Plant-Based Products and Spreads Awareness of Nutritional Be...
Ericsson Received Awards at the Stc Partner Day for Saudization and Internationa...
TBO Holidays Hotel XML API Integrated with TassPro and Itinerary HomePR & Events...
Registration is Now Open for Dubai Cares' Volunteer Globally in Malawi
Join the Dots With Max Mara
KIZAD to Participate in GulFood 2020 to Showcase Competitive Advantage
Range Rover Evoque: Europe's Favourite Compact SUV
SEHA to Showcase the Latest Technology in Diagnostics and Interventional Radiolo...
Easa Saleh Al Gurg Group Celebrates 60 Years of Nation Building by Renewing Its ...
Move Up in Life With Snowhite's Latest Fashion Destination in Abu Dhabi
Step Up Your Fashion Game with the Sleek HONOR MagicWatch 2