05.08.2016
Evonik Industries AG DE000EVNK013
DGAP-News: Evonik Industries AG: Evonik specifies outlook for 2016 following a good second quarter
DGAP-News: Evonik Industries AG / Key word(s): Half Year Results
Evonik Industries AG: Evonik specifies outlook for 2016 following a good
second quarter
05.08.2016 / 07:00
The issuer is solely responsible for the content of this announcement.
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Embargoed until 7 a.m. on August 5, 2016
Key Financial Data:
First half/second quarter 2016
Evonik specifies outlook for 2016 following a good second quarter
- Evonik increases volumes in the first six months
- Adjusted EBITDA margin continues at very good level of 18.1 percent in
the first six months
- Adjusted net income above EUR500 million
- Outlook for the full year specified: adjusted EBITDA in the upper half
of the anticipated range of EUR2.0 billion to EUR2.2 billion
Essen. Demand for Evonik's products rose worldwide in the first half of
this year. "We were able to increase volumes in persistently challenging
business conditions," said Klaus Engel, Chairman of the Executive Board of
Evonik Industries. "We are now confident that over the full year we will
deliver adjusted EBITDA in the upper half of the anticipated range of
EUR2.0 to EUR2.2 billion."
Evonik registered considerable volume growth in the first six months of
2016, mainly as a result of growth in the second quarter. Despite the
higher volumes, Group sales declined to EUR6,363 million, a drop of 8
percent compared with the first half of 2015, principally because lower raw
material costs were passed on to customers. Adjusted EBITDA was also below
the exceptionally strong prior-period figure at EUR1,150 million. Evonik
once again posted a very good adjusted EBITDA margin of 18.1 percent in the
first half of 2016.
Adjusted EBIT fell 18 percent to EUR795 million in the first six months.
Adjusted net income declined 20 percent to EUR501 million. Net income was
EUR405 million, down 40 percent from the high prior-year level, which
contained the proceeds from the divestment of the stake in Vivawest.
Capital expenditures for property, plant and equipment were EUR371 million
in the first six months of 2016, down 2 percent year-on-year. Despite the
lower operating result, Evonik's free cash flow of EUR208 million was
higher than in the first half of 2015 (EUR166 million). This was due, among
others, to a considerable reduction in net working capital.
Segment performance
In the Nutrition & Care segment, lower selling prices accompanied by almost
unchanged volumes resulted in a drop in both sales and earnings. In the
Resource Efficiency segment higher volumes increased sales and earnings.
Higher volumes and lower raw material prices improved earnings in the
Performance Materials segment despite a reduction in selling prices.
Outlook
Evonik still expects to report slightly lower sales in 2016 (2015: EUR13.5
billion). Thanks to its strong market positions, balanced portfolio and
concentration on high-growth businesses, the company assumes continued high
demand for its products and appreciable volume growth despite the difficult
macro-economic conditions. The new production capacities taken into service
in recent years and further intensification of sales activities are also
contributing to this. Selling prices are declining considerably, especially
in the Nutrition & Care and Performance Materials segments, leading to a
slight reduction in overall sales.
Based on the good business performance, especially in the second quarter,
and the expectations for the second half of the year, Evonik is specifying
its outlook for the full year: The company is confident that it can realize
adjusted EBITDA in the upper half of the anticipated range of EUR2.0 to
EUR2.2 billion.
Business performance in Q2 2016
In the second quarter of 2016 Group sales dropped 7 percent year-on-year to
EUR3,258 million. While volumes increased in all three chemical segments,
the decline in sales was principally attributable to the fact that selling
prices were lower than in the prior-year period. Adjusted EBITDA was EUR585
million, 11 percent lower than in the exceptionally strong prior-year
quarter.
The adjusted EBITDA margin was very good at 18.0 percent. Adjusted EBIT
fell 16 percent to EUR406 million. Adjusted net income dropped 20 percent
to EUR246 million. Overall, net income was EUR165 million. That was below
the prior-period level of EUR418 million, which contained the proceeds from
the divestment of the stake in Vivawest.
Details of segment performance
In the second quarter of 2016, the Nutrition & Care segment's sales fell 11
percent to EUR1,111 million. This was mainly attributable to lower selling
prices as volume sales increased. Adjusted EBITDA was EUR264 million, which
was below the very high prior-year level of EUR381 million, mainly on price
grounds. The adjusted EBITDA margin dropped to 23.8 percent. In the first
six months of 2016 this segment's sales dropped by 13 percent to EUR2,157
million. While volumes were almost unchanged, lower selling prices were the
main reason for the decline. Adjusted EBITDA was 24 percent below the very
strong prior-year level at EUR557 million. The adjusted EBITDA margin is
still excellent at 25.8 percent.
Business continued to develop pleasingly in the Resource Efficiency segment
in the second quarter: Sales rose 4 percent to EUR1,156 million. The main
drivers were higher global demand and the activities acquired in 2015. This
was countered by a slight reduction in selling prices. Adjusted EBITDA
improved 6 percent to EUR270 million, mainly as a consequence of higher
volumes, favorable raw material costs and positive currency effects. The
adjusted EBITDA margin improved to a very good 23.4 percent. In the first
six months of the year, this segment's sales rose 2 percent to EUR2,276
million, driven principally by higher volumes. Lower selling prices had a
counter-effect. Adjusted EBITDA increased 6 percent to EUR526 million. The
adjusted EBITDA margin improved to 23.1 percent (H1 2015: 22.3 percent).
In the Performance Materials segment, sales dropped 12 percent to EUR829
million in the second quarter, principally owing to lower selling prices as
a result of the reduction in raw material prices. By contrast, volumes rose
considerably thanks to good demand. Adjusted EBITDA rose by 28 percent to
EUR105 million. This was principally due to a rise in volumes, improved raw
material efficiency and systematic cost management. The adjusted EBITDA
margin was 12.7 percent, up from 8.7 percent in the second quarter of 2015.
Sales in the Performance Materials segment fell 10 percent to EUR1,601
million in the first six months of 2016. With volumes up, the decline was
caused by the oil-driven drop in selling prices. Adjusted EBITDA improved
10 percent to EUR169 million. The adjusted EBITDA margin improved to 10.6
percent.
Evonik Group: Excerpt from the income statement
(in EUR million) Q2 2016 Q2 Change H1 H1 Change
2015 in % 2016 2015 in %
Sales 3,258 3,519 -7 6,363 6,944 -8
Adjusted EBITDA 585 661 -11 1,150 1,311 -12
Adjusted EBIT 406 486 -16 795 971 -18
Adjustments -47 122 -59 85
Financial result -93 -51 -128 -114
Income before 266 557 -52 608 942 -35
income taxes,
continuing
operations
Income taxes -97 -133 -195 -249
Income after taxes, 169 424 -60 413 693 -40
continuing
operations
Income after taxes, -1 -5 -1 -15
discontinued
operations
Income after taxes 168 419 -60 412 678 -39
thereof 3 1 7 4
attributable to
non-controlling
interests
Net income 165 418 -61 405 674 -40
Adjusted net income 246 307 -20 501 627 -20
Prior-year figures restated
Segment performance
Sales Q2 Adjusted
EBITDA Q2
2016 2015 Change 2016 2015 Change
EUR EUR in % EUR EUR in %
million million million million
Nutrition & 1,111 1,248 -11 264 381 -31
Care
Resource 1,156 1,110 4 270 254 6
Efficiency
Performance 829 938 -12 105 82 28
Materials
Services 163 211 -23 33 28 18
Other -1 12 - -87 -84 -4
operations /
consolidation
Group 3,258 3,519 -7 585 661 -11
Sales H1 Adjusted
EBITDA H1
2016 2015 Change 2016 2015 Change
EUR EUR in % EUR EUR in %
million million million million
Nutrition & 2,157 2,476 -13 557 734 -24
Care
Resource 2,276 2,233 2 526 498 6
Efficiency
Performance 1,601 1,788 -10 169 154 10
Materials
Services 330 419 -21 68 74 -8
Other -1 28 - -170 -149 -14
operations /
consolidation
Group 6,363 6,944 -8 1,150 1,311 -12
Employees by segment
June 30, 2016 Dec. 31, 2015
Nutrition & Care 7,369 7,165
Resource Efficiency 8,758 8,662
Performance Materials 4,376 4,380
Services 12,737 12,668
Other operations 502 701
Group 33,742 33,576
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. In fiscal 2015
more than 33,500 employees generated sales of around EUR13.5 billion and an
operating profit (adjusted EBITDA) of about EUR2.47 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
[email protected]
Evonik Industries AG
Rellinghauser Straße 1-11
45128 Essen
Germany
Phone +49 201 177-01
Telefax +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 Essen
Registered court
Essen local court
Commercial registry B 19474
VAT ID no. DE 811160003
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05.08.2016 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.
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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, Hamburg, Hanover, Munich,
Stuttgart, Tradegate Exchange; Luxemburg
End of News DGAP News Service
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