Q3 core profit drops 5% despite 26% sales growth / Plans for hundreds of millions in cost cuts
German speciality chemicals group Evonik (Essen; www.evonik.com) has managed to pass its costs to customers by raising prices, a move that boosted third quarter sales 26% year-on-year to EUR 4.88 bn despite declining volumes and a weakening economy.

But even though turnover improved, the company said adjusted EBITDA – or core profit – in the period fell 5% to EUR 615 mn.

Evonik announced cost-cutting measures to save hundreds of millions of euros next year, and the steps include restrictions on business travel and trade shows, less use of external consultants, and disciplined hiring.
Better sales expected; Q3 earnings disparity at plastics-related units
The supplier confirmed its 2022 outlook of EUR 2.5-2.6 bn for adjusted EBITDA and upwardly revised its estimate for sales to EUR 18.5 bn from its previous outlook of EUR 17-18 bn (see Plasteurope.com of 16.08.2022).

Only one plastics-relevant segments – speciality additives – showed core profit growth, with adjusted EBITDA improving 8% to EUR 243 mn.

Adjusted EBITDA at the performance materials business dropped 24% to EUR 74 mn; at smart materials it was unchanged at EUR 177 mn.

Evonik said it is also pushing ahead with the revamp of its portfolio to concentrate on specialty chemicals. The company has already divested its US betaine business in the US and its TAA derivatives operations.
18.11.2022 Plasteurope.com [251560-0]
Published on 18.11.2022
Evonik: Sparprogramm soll Rezessionsfolgen lindernGerman version of this article...

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