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Germany’s Evonik beats earnings expectations on higher pricing
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(Reuters) -German chemicals group Evonik Industries on Thursday reported better-than-expected adjusted quarterly core profit, as higher selling prices offset an increase in variable costs, including energy prices.
(Reuters) -German chemicals group Evonik Industries on Thursday reported better-than-expected adjusted quarterly core profit, as higher selling prices offset an increase in variable costs, including energy prices.
The company, 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 735 million euros ($801 million) in the first quarter. That was above analysts’ forecast of 652 million euros in a company-provided poll.
“Across all divisions, we were able to adjust selling prices successfully and therefore offset the increase in variable costs,” Chief Executive Christian Kullmann said in a statement, adding that higher energy prices and uncertainty over the supply of raw materials weighed on the chemical industry.
Many analysts have cut their valuations of chemical companies following Russia’s invasion of Ukraine, citing rising energy costs and supply chain disruptions.
Last week, German chemicals giant BASF reported an unexpected drop in first-quarter net income, citing impairments at its oil and gas unit that had co-funded the abandoned Nord Stream 2 project, while Covestro warned of damage that an immediate gas embargo on Russia gas.
Evonik reaffirmed its 2022 guidance of adjusted core profit of 2.5 billion to 2.6 billion euros, and sales of between 15.5 billion and 16.5 billion euros.
Evonik shares were up 2.7% as of 1235 GMT.
($1 = 0.9176 euros)
(Reporting by Bartosz Dabrowski in Gdansk;Editing by Bernadette Baum)
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