Evonik Industries AG: Good results in third quarter
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 segmentsResource 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) Q32018 Q32017 Changein % 1-92018 1-92017 Changein % 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 Changein % Q3 2018 Q3 2017 Changein % 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 Changein % 1-9 2018 1-9 2017 Changein % 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 firstname.lastname@example.org
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 ChairmanExecutive 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. Archive at www.dgap.deLanguage: 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@example.com 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