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SINGAPORE (ICIS)–Evonik has incurred a
second-quarter net loss of €270m amid a
recession in Europe and a weak pick-up in
Chinese economic activity, the specialty
chemicals firm said on Thursday.
The Q2 net loss “is primarily a result of
impairment charges totaling €390 million,
mainly on production facilities of methionine
worldwide, as well as for silica in Europe and
North America”, the company said.
| € million | Q2 2023 | Q2 2022 | % change | H1 2023 | H1 2022 | % change |
| Sales | 3,886 | 4,772 | -19 | 7,891.0 | 9,270 | -15 |
| Adjusted EBITDA | 450 | 728 | -38 | 859.0 | 1,462 | -41 |
| Net income | (270) | 297 | – | (223) |
611 |
– |
Second-quarter sales volumes declined by 9%
year on year, while prices were down by 5% amid
the economic downturn, the company said.
“Germany is in a recession, Europe as well, and
the economy in China is not picking up as we
had hoped,” Evonik chair Christian Kullmann.
“Unfortunately, the second quarter showed no
meaningful turnaround for our business.”
Evonik continues to revamp its portfolio, with
its Luelsdorf site in Germany divested to the
International Chemical Investors Group of
Luxembourg effective 30 June.
“The superabsorbents business has been
classified as held for sale and was
reclassified accordingly in the balance sheet
as of June 30. The divestment process is
progressing as planned,” it added.
On 10 July, Evonik revised down its
full-year earnings expectations by as much
as €500m on the assumption that there will be
no economic recovery in H2 2023.
It now expects 2023 adjusted earnings before
interest, taxes, depreciation and amortisation
(EBITDA) to be in the €1.6bn-1.8bn range
compared with a previous guidance of
€2.1bn-2.4bn at the start of the year.
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