Evonik has reported second quarter net income down 28% to EUR139m (US$186m) compared with EUR193m in the same period last year.
Sales were marginally up 1% to EUR3.24bn (US$4.33bn) compared with EUR3.2bn in the same period a year ago.
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Adjusted EBITDA was down 7% to EUR473m compared with EUR509m. Income before income taxes, continuing operations, was down 9% to EUR212m compared with EUR233m.
Evonik’s sales for the first half of 2014 were marginally up 0.4% to EUR6.44bn compared with EUR6.42bn in the previous year period.
Adjusted EBITDA was down 16% to EUR936m compared with EUR1.11m. Income before income taxes, continuing operations, was down 29% to EUR424m compared with EUR601m.
Net income was down 37% to EUR305m compared with EUR486m in the year ago period.
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By GlobalData“Strong demand for our products was registered worldwide in the second quarter of 2014 in a slightly positive economic environment,” said Evonik chairman, Klaus Engel. “Our business developed solidly overall.
“Overall, the clear downward price trend for some important products observed in previous quarters slowed perceptibly. The earnings performance of all our segments improved slightly compared with the first quarter.
Even though development in the first six months was somewhat weaker than had been anticipated, Evonik says it still expects to see a slight upturn in global growth in 2014 as a whole.
The company nonethless adds the recovery in the global economy is affected by increasing structural challenges in emerging markets and uncertainty arising from ongoing political disputes and military conflicts.
Despite the expected upturn in demand, the decline in producer prices observed in 2013 will not be reversed in all end-customer industries in 2014.
Overall, Evonik is confirming and specifying its outlook for 2014.
The company still anticipates sales will rise slightly (2013: EUR12.7bn) and adjusted EBITDA will be between EUR1.8bn and EUR2.1bn (2013: EUR2bn).
The positive volume trend should continue, driven by the completion of the first growth investments.
On the price front, the company expects the stabilisation that has been evident so far to continue.
