Evonik reports good start to the year
All three chemicals segments contributed to the gain in earnings. “We are consistently implementing our new strategy,” said Christian Kullmann, Chairman of the Executive Board. “With our focus on innovation and our performance-oriented corporate culture, we are consistently striving for profitable growth. Our goal is a balanced portfolio focused on specialty chemicals.”
Sales grew 1 percent to €3.68 billion in the first quarter, driven mainly by slightly higher sales volumes as well as increased selling prices. Currency effects, especially the weaker U.S. dollar, had a counter effect. The adjusted EBITDA margin improved to 18.5 percent (prior-year quarter: 16.4 percent). Adjusted net income increased to €333 million and adjusted earnings per share rose to €0.71. Free cash flow increased to €84 million (prior-year quarter: €57 million) as a result of lower outflows for capital expenditures.
Outlook confirmed in full
Despite an increasingly negative currency effect, Evonik is reiterating its forecast and expects to grow both sales and operating earnings this year. Adjusted EBITDA is expected to increase to between €2.4 billion and €2.6 billion (2017: €2.36 billion). Thanks to its strong market positions and strategic focus on its four growth engines—Specialty Additives, Animal Nutrition, Smart Materials, and Health & Care—Evonik anticipates that demand will remain high.