Evonik confirms 2022 earnings outlook after reporting in-line Q3 core profit
Nov 8 (Reuters) – German chemicals group Evonik Industries (EVKn.DE) on Tuesday confirmed its 2022 earnings outlook after reporting broadly in-line core profit for the third quarter, despite lower sales volumes, as increased selling prices continued to offset higher variable costs.
Evonik confirmed its annual outlook for adjusted EBITDA in the range of 2.5 billion to 2.6 billion euros and increased its sales guidance to 18.5 billion euros, from between 17 billion and 18 billion euros earlier.
Previously, Evonik had said that the upper end of its adjusted EBITDA guidance was “well underpinned”
The company also said it was planning cut costs in 2023 by a three-digit million-euro range figure, with measures including restrictions on business travel and trade shows, limiting the use of external consultants, and disciplined hiring.
Efficiency drives have become the order of the day across corporate Europe, as the war in Ukraine drives up energy costs, causing decades-high inflation.
Nov 8 (Reuters) – German chemicals group Evonik Industries (EVKn.DE) on Tuesday confirmed its 2022 earnings outlook after reporting broadly in-line core profit for the third quarter, despite lower sales volumes , as increased selling prices continued to offset higher variable costs .Its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 5% on the year to 615 million euros ($615.00 million) in the three months to Sept. 30, compared to analysts’ forecast of 608 million euros in a company-provided poll.Third-quarter sales for the company, which makes ingredients for products ranging from animal feed and diapers to Pfizer/BioNTech’s COVID-19 vaccine, jumped 26% to 4.88 billion euros , above analysts’ expectations of 4.39 billion euros .The company also reported free cash flow (FCF) at 288 million euros in the third quarter, a significant rise from a negative 106 million euros in the first half, and expects it to further improve in the fourth quarter.Evonik confirmed its annual outlook for adjusted EBITDA in the range of 2.5 billion to 2.6 billion euros and increased its sales guidance to 18.5 billion euros , from between 17 billion and 18 billion euros earlier.
Previously, Evonik had said that the upper end of its adjusted EBITDA guidance was “well underpinned”
“Despite the increasingly difficult environment, we remain confident of achieving our outlook for the full year … At the same time, we are preparing for a recession in the coming year.” Chief Executive Officer Christian Kullmann said.The company also said it was planning cut costs in 2023 by a three-digit million-euro range figure, with measures including restrictions on business travel and trade shows, limiting the use of external consultants , and disciplined hiring .Efficiency drives have become the order of the day across corporate Europe, as the war in Ukraine drives up energy costs , causing decades-high inflation.
