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Evonik Industries AG
Earnings Release • Mar 2, 2017
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Earnings Release
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News Details
Corporate | 2 March 2017 07:00
Evonik Industries AG: A good performance in 2016 – Acquisitions strengthen growth segments
DGAP-News: Evonik Industries AG / Key word(s): Final Results
02.03.2017 / 07:00
The issuer is solely responsible for the content of this announcement.
**A good performance in 2016
Acquisitions strengthen growth segments**
– Forecast fully achieved: adjusted EBITDA is at the upper end of the range at EUR2.165 billion
– Proposed dividend: constant at an attractive level of EUR1.15 per share
– Outlook for 2017: higher revenues and earnings, adjusted EBITDA between EUR2.2 billion and EUR2.4 billion
Essen . Evonik Industries AG fully achieved its earnings forecast in 2016. With adjusted EBITDA of EUR2.165 billion, earnings were at the upper end of the range of EUR2.0 billion to EUR2.2 billion. While volumes grew by a 3 solid percent, sales declined 6 percent to EUR12.7 billion as a result of lower prices.
“At 17 percent, our adjusted EBITDA margin remains good,” said Klaus Engel, Chairman of the Executive Board. “The successful acquisition of the Air Products specialty additives business and the planned acquisition of Huber’s silica business provide additional growth impetus and open up further perspectives for our attractive portfolio.”
At the Annual Shareholders’ Meeting on May 23, the Executive Board and Supervisory Board will be proposing a dividend of EUR1.15 per share. Based on the closing share price at year-end 2016, that gives a dividend yield of 4.1 percent, positioning Evonik among the top chemical companies. “The high free cash flow of EUR810 million enables us to make this level of payout without impairing our ambitious growth targets,” said Engel.
Following an exceptionally strong performance in the previous year, the earnings situation normalized in 2016. Evonik was only partially able to compensate for the low global economic momentum, the low oil price, and the normalization of prices for animal nutrition products. Adjusted EBITDA was therefore 12 percent below the previous year’s outstanding level. Adjusted net income also dropped year-on-year to EUR930 million.
Evonik’s financial position is still very sound. “The structure of our balance sheet remains healthy, even after acquiring the Air Products specialty additives business,” said CFO Ute Wolf. This is also evidenced by solid investment-grade ratings. “Capital efficiency and cash flow will continue to play a central role in the management of the company,” said Wolf.
The return on capital employed (ROCE) was 14 percent in 2016 and thus once again well above the cost of capital.
Evonik expects the Nutrition & Care and Resource Efficiency growth segments to make a positive earnings contribution in 2017 as a result of the successful integration of the Air Products specialty additives business. In addition, the company’s strong market positions, balanced portfolio and concentration on high-growth businesses will continue to drive its performance.
Despite the increasing uncertainty inherent in the geopolitical situation and high market volatility, Evonik aims to grow revenues and operating earnings in 2017 and expects adjusted EBITDA to be between EUR2.2 billion and EUR2.4 billion.
Evonik Group: Excerpt from the income statement
| (in EUR million) | Q4 2016 | Q4 2015 | Change in % |
2016 | 2015 | Change in % |
| Sales | 3,205 | 3,198 | 0 | 12,732 | 13,507 | -6 |
| Adjusted EBITDA | 437 | 501 | -13 | 2,165 | 2,465 | -12 |
| Adjusted EBIT | 258 | 308 | -16 | 1,448 | 1,752 | -17 |
| Adjustments | -76 | -82 | -150 | -88 | ||
| Financial result | 8 | -22 | -174 | -223 | ||
| Income before income taxes, continuing operations | 190 | 204 | -7 | 1,124 | 1,441 | -22 |
| Income taxes | -66 | -70 | -362 | -422 | ||
| Income after taxes, continuing operations | 124 | 134 | -7 | 762 | 1,019 | -25 |
| Income after taxes, discontinued operations | 95 | -2 | 96 | -17 | ||
| Income after taxes | 219 | 132 | 66 | 858 | 1,002 | -14 |
| thereof attributable to non-controlling interests | 3 | 3 | 14 | 11 | ||
| \= Net income | 216 | 129 | 67 | 844 | 991 | -15 |
| Adjusted net income | 182 | 205 | -11 | 930 | 1,128 | -18 |
Segment performance
| Sales | Adjusted EBITDA | |||||
| Q4 2016 | Q4 2015 | Change | Q4 2016 | Q4 2015 | Change | |
| EUR million | EUR million | in % | EUR million | EUR million | in % | |
| Nutrition & Care | 1,093 | 1,208 | -10 | 209 | 319 | -34 |
| Resource Efficiency | 1,081 | 1,001 | 8 | 189 | 182 | 4 |
| Performance Materials | 846 | 789 | 7 | 98 | 62 | 58 |
| Services | 180 | 203 | -11 | 32 | 40 | -20 |
| Other operations | 5 | -3 | – | -91 | -102 | – |
| Group | 3,205 | 3,198 | 0 | 437 | 501 | -13 |
| Sales | Adjusted EBITDA | |||||
| 2016 | 2015 | Change | 2016 | 2015 | Change | |
| EUR million | EUR million | in % | EUR million | EUR million | in % | |
| Nutrition & Care | 4,316 | 4,924 | -12 | 1,006 | 1,435 | -30 |
| Resource Efficiency | 4,473 | 4,279 | 5 | 977 | 896 | 9 |
| Performance Materials | 3,245 | 3,435 | -6 | 371 | 309 | 20 |
| Services | 683 | 828 | -18 | 151 | 159 | -5 |
| Other operations | 15 | 41 | – | -340 | -334 | |
| Group | 12,732 | 13,507 | -6 | 2,165 | 2,465 | -12 |
Prior-year figures restated
Employees by segment
| Dec. 31, 2016 | Dec. 31, 2015 | |
| Nutrition & Care | 7,594 | 7,165 |
| Resource Efficiency | 8,928 | 8,662 |
| Performance Materials | 4,393 | 4,380 |
| Services | 12,892 | 12,668 |
| Other operations | 544 | 701 |
| Evonik | 34,351 | 33,576 |
Prior-year figures restated
Company information
Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Profitable growth and a sustained increase in the value of the company form the heart of Evonik’s corporate strategy. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms.
Evonik is active in over 100 countries around the world with more than 35,000 employees. In fiscal 2016 the enterprise generated sales of around EUR12,7 billion and an operating profit (adjusted EBITDA) of about EUR2.165 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
Phone +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
Dr. Werner Müller, Chairman
Executive Board
Dr. Klaus Engel, Chairman
Christian Kullmann, Deputy Chairman
Dr. Ralph Sven Kaufmann
Thomas Wessel
Ute Wolf
Registered Office is Essen
Register Court Essen Local Court
Commercial Registry B 19474
02.03.2017 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, XS0911405784 |
| WKN: | EVNK01, A1TM7T |
| Indices: | MDAX |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; Luxemburg |
| End of News | DGAP News Service |