Good results in third quarter
- Sales up by 7 percent to €3.8 billion
- Adjusted EBITDA rises 8 percent to €692 million
- Full-year outlook for 2018 confirmed
Evonik increased adjusted EBITDA to €692 million in the third quarter of 2018 (prior-year: €640 million). The two growth segments – Nutrition & Care and Resource Efficiency – contributed considerable earnings growth, helping to increase profitability. The adjusted EBITDA margin improved to 18.2 percent compared with 18.0 percent in the same quarter of the previous year.
Sales increased to €3.8 billion in the third quarter (prior-year: €3.6 billion), largely due to higher selling prices. Adjusted net income rose 35 percent to €370 million, which corresponds to adjusted earnings per share of €0.79.
“We are consistently implementing our strategy,” says Christian Kullmann, Chairman of the Executive Board. “We will continue to actively shape our portfolio, bring innovations to the market and drive cultural change.”
Evonik confirms its outlook, which it had raised after the first half of the year, for the fiscal year 2018 and is still expecting an adjusted EBITDA between €2.60 and €2.65 billion and sales to increase slightly (previous year: €14.4 billion). Evonik is sticking to its outlook for a noticeably higher free cash flow for 2018 compared to the prior year (€511 million).
Robust demand in the majority of the relevant end-markets is expected to continue into the fourth quarter, especially for the growth segments Nutrition & Care and Resource Efficiency.
Development in the segments
Resource Efficiency: Sales at the segment increased by 5 percent to €1.4 billion in the third quarter, while adjusted EBITDA was 9 percent above the same quarter of the previous year at €338 million. The adjusted EBITDA margin in the segment increased to 23.7 percent from 22.9 percent. High demand for high-performance polymers used in lightweight design and for water-based, environmentally friendly paints and coatings boosted sales in the quarter.
Nutrition & Care: Segment sales rose 5 percent to €1.2 billion. Adjusted EBITDA rose by 13 percent to €212 million. The segment was able to significantly increase its adjusted EBITDA margin to 18.2 percent (prior-year: 16.9 percent). Demand remained high in the amino acids business for animal nutrition. The Personal Care and Health Care businesses continued to develop very well.
Performance Materials: Sales at the segment reached €1.0 billion in the third quarter, 13 percent above the previous-year quarter. Selling prices were higher, mainly due to the passing on of increased raw-materials costs. Low water levels in the Rhine River reduced transport volumes which had a negative impact on the flow of raw materials and goods. The methacrylate business enjoyed continued good demand, especially from the coatings and auto industries. The segment’s adjusted EBITDA of €172 million was on the same level as the year-ago period while the adjusted EBITDA margin dropped to 16.6 percent from 18.8 percent.
Evonik is one of the world leaders in specialty chemicals. The focus on more specialty businesses, customer-orientated innovative prowess and a trustful and performance-oriented corporate culture form the heart of Evonik’s corporate strategy. They are the lever for profitable growth and a sustained increase in the value of the company. Evonik benefits specifically from its customer proximity and leading market positions. Evonik is active in over 100 countries around the world with more than 36,000 employees. In fiscal 2017, the enterprise generated sales of €14.4 billion and an operating profit (adjusted EBITDA) of €2.36 billion.
In so far as forecasts or expectations are expressed in this press release or where our statements concern the future, these forecasts, expectations or statements may involve known or unknown risks and uncertainties. Actual results or developments may vary, depending on changes in the operating environment. Neither Evonik Industries AG nor its group companies assume an obligation to update the forecasts, expectations or statements contained in this release.