Weak demand continues to weigh on Evonik
The sluggish global economy also had a negative impact on the chemical group Evonik in the third quarter. In the three months to the end of September, sales fell by 23 percent year-on-year to €3.77 billion, as the Group announced in Essen on Tuesday. Adjusted for special effects, earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to 485 million euros, slightly more than in the previous quarter, but 21 percent less than a year ago.
While turnover fell well short of analysts' mid-range estimates, the operating result was higher, thanks in part to cost-cutting measures. Evonik CEO Christian Kullmann confirmed the outlook for the year that was lowered in the summer.
"The global economic recovery is still a long time coming," said Kullmann. "We are therefore concentrating on the levers that we have in our own hands." Nevertheless, the bottom line was a loss of 96 million euros after a profit of 214 million a year ago. In addition to the dismal business development, a value adjustment in the business with superabsorbents - highly absorbent materials - also played a role here.
Despite the challenges in the chemical industry, Evonik's CEO emphasized the importance of focusing on internal cost-cutting measures. Despite the weak demand, Chemistry continues to be a vital sector for Evonik, with the company implementing strategies to navigate through the tough economic conditions.
Source: www.dpa.com
