Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Evonik's quarterly profit beats estimates on higher prices, currency effects

Stock Markets Aug 10, 2022 06:35
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
EVKn
+0.06%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

(Reuters) -German chemicals group Evonik Industries on Wednesday reported higher-than-expected core profit for the second quarter, on the back of higher selling prices across all divisions and positive currency effects, and despite slightly lower volumes.

Evonik, which makes ingredients for products ranging from animal feed and diapers to Pfizer/BioNTech's COVID-19 vaccine, reported adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of 728 million euros ($743 million) in the three months to June 30, up 12% on the year and above analysts' forecast of 700 million in a company-provided poll.

"We had a strong first half of the year ... Regarding the increasing uncertainties, especially on the energy side, we reckon these challenges will prevail and potentially even accelerate in the second half of the year," Chief Executive Christian Kullmann said in a statement.

German chemical companies, which are highly dependent on Russian gas imports, are scrambling to prepare for further gas supply cuts in response to Western sanctions imposed following Russia's invasion of Ukraine.

Evonik said on Monday it was substituting up to 40% of natural gas at its German sites with alternative sources including liquefied petroleum gas and coal, while energy supplies to its sites abroad were largely independent of gas supplies from Russia.

The company raised its 2022 sales outlook to between 17 billion and 18 billion euros from an earlier forecast of 15.5 billion to 16.5 billion euros.

It also said the upper end of its 2.5 billion to 2.6 billion euro adjusted EBITDA guidance was "well underpinned".

Evonik's free cash outflow was 239 million euros in the quarter against an inflow of 101 million last year, due to a build-up in net working capital caused by increased raw material prices and higher inventory levels. Analysts had expected an outflow of 167 million euros.

Germany is Europe's largest producer of chemicals.

($1 = 0.9793 euros)

Evonik's quarterly profit beats estimates on higher prices, currency effects
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email