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Evonik Industries AG
Earnings Release • Nov 6, 2018
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Earnings Release
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News Details
Corporate | 6 November 2018 07:00
Evonik Industries AG: Good results in third quarter
DGAP-News: Evonik Industries AG / Key word(s): 9-month figures
06.11.2018 / 07:00
The issuer is solely responsible for the content of this announcement.
Key Financial Data: Third quarter 2018
Good results in third quarter
– Sales up by 7 percent to EUR3.8 billion
– Adjusted EBITDA rises 8 percent to EUR692 million
– Full-year outlook for 2018 confirmed
Essen, Germany. Evonik increased adjusted EBITDA to EUR692 million in the third quarter of 2018 (prior-year: EUR640 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 EUR3.8 billion in the third quarter (prior-year: EUR3.6 billion), largely due to higher selling prices. Adjusted net income rose 35 percent to EUR370 million, which corresponds to adjusted earnings per share of EUR0.79.
“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.”
Outlook confirmed
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 EUR2.60 and EUR2.65 billion and sales to increase slightly (previous year: EUR14.4 billion). Evonik is sticking to its outlook for a noticeably higher free cash flow for 2018 compared to the prior year (EUR511 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 EUR1.4 billion in the third quarter, while adjusted EBITDA was
9 percent above the same quarter of the previous year at
EUR338 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 EUR1.2 billion. Adjusted EBITDA rose by 13 percent to EUR212 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 EUR1.0 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 EUR172 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 Group: Excerpt from the income statement | ||||||
| (in EUR million) | Q3 2018 |
Q3 2017 |
Change in % |
1-9 2018 |
1-9 2017 |
Change in % |
| Sales | 3,794 | 3,556 | 7% | 11,343 | 10,810 | 5% |
| Adjusted EBITDA | 692 | 640 | 8% | 2,114 | 1,874 | 13% |
| Adjusted EBIT | 468 | 423 | 11% | 1,462 | 1,245 | 17% |
| Adjustments | -19 | -31 | -63 | -198 | ||
| Financial result | -42 | -62 | -141 | -153 | ||
| Income before income taxes, continuing operations | 407 | 330 | 23% | 1,258 | 894 | 41% |
| Income taxes | -76 | -101 | -319 | -278 | ||
| Income after taxes, continuing operations | 331 | 229 | 45% | 939 | 616 | 52% |
| Income after taxes, discontinued operations | 3 | 2 | 4 | 4 | ||
| Income after taxes | 334 | 231 | 45% | 943 | 620 | 52% |
| thereof attributable to non-controlling interests | 5 | 4 | 15 | 14 | ||
| Net Income | 329 | 227 | 45% | 928 | 606 | 53% |
| Adjusted net income | 370 | 275 | 35% | 1,057 | 816 | 30% |
| Prior-year figures restated. |
| Segment performance | ||||||
| Sales | Adjusted EBITDA | |||||
| (in EUR million) | Q3 2018 | Q3 2017 | Change in % |
Q3 2018 | Q3 2017 | Change in % |
| Nutrition & Care | 1,167 | 1,110 | 5% | 212 | 188 | 13% |
| Resource Efficiency | 1,426 | 1,358 | 5% | 338 | 311 | 9% |
| Performance Materials | 1,034 | 913 | 13% | 172 | 172 | 0% |
| Services | 164 | 172 | -5% | 49 | 49 | 0% |
| Other operations | 3 | 3 | -79 | -80 | ||
| Group | 3,794 | 3,556 | 7% | 692 | 640 | 8% |
| Sales | Adjusted EBITDA | |||||
| 1-9 2018 | 1-9 2017 | Change in % |
1-9 2018 | 1-9 2017 | Change in % |
|
| Nutrition & Care | 3,474 | 3,393 | 2% | 643 | 575 | 12% |
| Resource Efficiency | 4,305 | 4,085 | 5% | 1,029 | 926 | 11% |
| Performance Materials | 3,054 | 2,781 | 10% | 546 | 497 | 10% |
| Services | 499 | 539 | -7% | 133 | 130 | 2% |
| Other operations | 11 | 12 | -237 | -254 | ||
| Group | 11,343 | 10,810 | 5% | 2,114 | 1,874 | 13% |
| Prior-year figures restated. |
| Employees by segment | ||
| 30.09.2018 | 31.12.2017 | |
| Nutrition & Care | 8,237 | 8,257 |
| Resource Efficiency | 10,318 | 10,260 |
| Performance Materials | 4,264 | 4,364 |
| Services | 12,979 | 13,021 |
| Other operations | 518 | 621 |
| Evonik | 36,316 | 36,523 |
About Evonik
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 EUR14.4 billion and an operating profit (adjusted EBITDA) of EUR2.36 billion.
Disclaimer
In so far as forecasts or expectations are expressed in this Investor Relations News 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.
Contact:
Tim Lange
Head of Investor Relations
+49 201 177-3150
Evonik Industries AG
Rellinghauser Straße 1-11
45128 Essen
Germany
Phone +49 201 177-01
Fax +49 201 177-3475
www.evonik.com
Supervisory Board
Bernd Tönjes, Chairman
Dr. Werner Müller, Honorary Chairman
Executive Board
Christian Kullmann, Chairman
Dr. Harald Schwager, Deputy Chairman
Thomas Wessel
Ute Wolf
Registered Office is Essen
Register Court Essen Local Court
Commercial Registry B 19474
06.11.2018 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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| Language: | English |
| Company: | Evonik Industries AG |
| Rellinghauser Straße 1-11 | |
| 45128 Essen | |
| Germany | |
| Phone: | +49 (0) 201 177-01 |
| Fax: | +49 (0) 201 177-3475 |
| E-mail: | [email protected] |
| Internet: | www.evonik.com |
| ISIN: | DE000EVNK013 |
| WKN: | EVNK01 |
| Indices: | MDAX |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; Luxembourg Stock Exchange |
| End of News | DGAP News Service |