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Evonik Industries AG
Earnings Release • May 5, 2017
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Earnings Release
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News Details
Corporate | 5 May 2017 07:00
Evonik Industries AG: A Good Start to Fiscal 2017
DGAP-News: Evonik Industries AG / Key word(s): Quarter Results
05.05.2017 / 07:00
The issuer is solely responsible for the content of this announcement.
Key Financial Data:
January 1 to March 31, 2017 / Q1 2017
A Good Start to Fiscal 2017
– Sales grow considerably by 19 percent to EUR3.68 billion
– Adjusted EBITDA increases 8 percent to EUR612 million
– Air Products specialty additives business is being successfully integrated
– Outlook for the full year confirmed
Essen . Evonik increased sales considerably by 19 percent to EUR3.68 billion in the first three months of 2017. The main growth drivers were higher demand, which boosted sales volumes, and the first-time inclusion of the Air Products specialty additives business.
“The successful start to the year shows that we are on the right track with our growth strategy,” said Klaus Engel, Chairman of the Executive Board. “The combination of organic growth and strategic acquisitions has strengthened the company. We are on the road to becoming less vulnerable to economic cycles and having a more balanced portfolio. Demand for our specialty chemicals such as silica, coating additives and pharmaceutical ingredients boosted quarterly earnings.”
Adjusted EBITDA rose 8 percent to EUR612 million in the first quarter driven by improved results in the Resource Efficiency and Performance Materials segments. Earnings at Nutrition & Care were significantly below the prior year period mainly because of lower prices for animal nutrition products.
The company’s adjusted net income at EUR260 million remained at about the same level as the first quarter last year with adjusted earnings per share at EUR0.56. Net income was EUR160 million, about EUR80 million less than last year. The decline was primarily due to one-time effects tied to the acquisition of the Air Products specialty additives business.
The specialty additives business acquired from Air Products at the beginning of the year is being integrated successfully and smoothly. The company is still on track to achieve its planned synergies of about EUR70 million by 2020. The acquisition of the silica business of U.S. company J. M. Huber is progressing well and Evonik aims to close the purchase in the second half of the year.
The company’s net financial debt amounted to EUR2.3 billion at the end of the first quarter after payment for the Air Products specialty additives business. “Evonik still has a solid financial position after the biggest acquisition in the company’s history,” said Chief Financial Officer Ute Wolf. “We are within the framework of a solid investment-grade rating.”
Outlook Confirmed
Evonik is confident of achieving its forecast to grow sales and operating earnings in 2017 and expects adjusted EBITDA to increase to between EUR2.2 billion and EUR2.4 billion (previous year: EUR2.165 billion). The growth segments Nutrition & Care and Resource Efficiency will benefit from the integration of the Air Products specialty additives business.
Segment Performance
Resource Efficiency: Sales rose 24 percent to EUR1.39 billion with adjusted EBITDA gaining 21 percent to EUR310 million. High demand for silica from the tire industry, high performance polymers used for example in 3D printing as well as coating additives in the automotive sector boosted sales volumes.
Nutrition & Care: Sales increased 7 percent to EUR1.12 billion. Results were boosted by the inclusion of the business acquired from Air Products as well as a considerable increase in sales volumes. Countering those were selling prices, which were significantly below the prior year. Adjusted EBITDA fell 35 percent to EUR189 million at the segment.
Performance Materials: Sales gained 26 percent to EUR972 million with adjusted EBITDA more than doubling to EUR159 million. Healthy demand from industries such as automotive and construction as well as a tight supply situation in the market, especially for butadiene and MMA (methyl methacrylate), drove up prices and volumes.
| Evonik Group: Excerpt from Income Statement | |||
| (in EUR million) | Q1 2017 |
Q1 2016 |
Change |
| Sales | 3,683 | 3,106 | 19% |
| Adjusted EBITDA | 612 | 565 | 8% |
| Adjusted EBIT | 405 | 389 | 4% |
| Adjustments | -113 | -13 | |
| Financial result | -56 | -34 | 65% |
| Income before income taxes, continuing operations | 236 | 342 | -31% |
| Income taxes | -72 | -98 | -27% |
| Income after taxes | 164 | 244 | -33% |
| thereof attributable to non-controlling interests | 4 | 4 | |
| Net Income | 160 | 240 | -33% |
| Adjusted net income | 260 | 254 | 2% |
| Segment Performance | ||||||
| Sales | Adjusted EBITDA | |||||
| Q1 2017 EUR million |
Q1 2016 EUR million |
Change | Q1 2017 EUR million |
Q1 2016 EUR million |
Change | |
| Resource Efficiency | 1,391 | 1,120 | 24% | 310 | 256 | 21% |
| Nutrition & Care | 1,124 | 1,047 | 7% | 189 | 293 | -35% |
| Performance Materials | 972 | 772 | 26% | 159 | 64 | 148% |
| Services | 193 | 166 | 16% | 41 | 35 | 17% |
| Other operations | 3 | 1 | -87 | -83 | ||
| Group | 3,683 | 3,106 | 19% | 612 | 565 | 8% |
| Employees by Segment | ||
| March 31, 2017 | December 31, 2016 | |
| Resource Efficiency | 9,142 | 8,928 |
| Nutrition & Care | 8,549 | 7,594 |
| Performance Materials | 4,406 | 4,393 |
| Services | 12,705 | 12,892 |
| Other operations | 622 | 544 |
| Evonik | 35,424 | 34,351 |
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
05.05.2017 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.
Archive at www.dgap.de
| 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 |