Evonik First-Quarter Profit Declines 10% on Lower Selling PricesSheenagh Matthews
Evonik Industries AG, the German chemical maker that listed shares in Frankfurt two weeks ago, said first-quarter profit fell 10 percent as the company cut prices for some of its products and raw-material costs rose.
Adjusted earnings before interest, tax, depreciation and amortization dropped to 589 million euros ($771 million) from 656 million euros, the Essen-based company said today in a statement. Sales fell 4 percent to 3.26 billion euros in the quarter.
Chief Executive Officer Klaus Engel is sticking to a full-year forecast for revenue to rise and operating profit to remain at about the same level as last year. The chemical maker has boosted production and plans price increases for some products, which will support full-year earnings, said the company, which was previously known as Degussa.
“Since the economic environment remains challenging, Evonik got off to a somewhat moderate start to 2013 compared with the very strong first quarter of 2012,” Engel said today in the statement. “However, we expect business to pick up perceptibly in the second half of the year, partly because of a recovery in the global economy and partly because new production capacities will come on stream.”
Net income advanced 7 percent to 289 million euros in the first three months, Evonik said.
Evonik, a candidate to join Germany’s benchmark DAX index when enough shares are freely traded, has a market value of about 15 billion euros.
The company’s owners, RAG Stiftung and CVC Capital Partners Ltd. plan to sell additional stakes in the chemical maker after listing shares in April that had already been sold to institutional investors, they have said.