(Reuters) -German chemicals group Evonik Industries on Tuesday said it expected 2023 earnings at the low end of its earlier forecast, even as higher prices helped it beat first-quarter profit expectations.
Evonik, whose products are used in items from animal feed and diapers to Pfizer/BioNTech's COVID-19 vaccine, had previously guided for adjusted core earnings (EBITDA) of 2.1 billion to 2.4 billion euros for the full year. Analysts polled by Vara Research had expected it to reach 2.19 billion euros.
The shares fell 2.8% after the market opened before taking back some losses to trade down 1%.
The company attributed the downbeat outlook to falling prices for animal feed additive methionine and for products of the C4 chain in its performance materials unit.
Evonik, a market leader in the production of amino acids for poultry feeds, has been shifting its strategic focus towards high-margin speciality chemicals such as animal nutrition.
The group had in April said it would cut 200 jobs in the pet food unit as it aims to streamline its operations.
It said on Tuesday the planned sale of its superabsorbents business, a part of the performance materials division, was also progressing according to plan.
Evonik posted a 44% decline in first-quarter adjusted EBITDA to 409 million euros ($450.23 million), but beat analysts' forecast of 391.9 million euros, as pricing offset some of the lost volumes in the quarter marked by muted economic activity.
"The start to the year was even more challenging than we feared," CEO Christian Kullmann said in a statement, but added the company had seen signs of business recovery over the course of the quarter.
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