ERJ staff report (TP)
Essen, Germany – Evonik Industries reported “slight organic sales growth” to €6.4 billion in the first half of 2014.
The company said: “The overall global economic development was slightly weaker than expected. Although the sustained upward trend in global growth continued, no additional momentum was generated in the second quarter.”
In the first six months, the group sales posted organic growth of 2 percent. This was driven by higher volumes (5 percentage points), while selling prices were lower (-3 percentage points).
Taking into account currency effects (-2 percentage points), sales amounted to €6,448 million, up from the prior-period figure of €6,421 million.
Adjusted EBITDA fell 16 percent to €936 million (H1 2013: €1,115 million), mainly due to erosion of selling prices for some important products. The adjusted EBITDA margin therefore declined from 17.4 percent to 14.5 percent.
Overall, net income dropped 37 percent to €305 million in the first six months of 2014 (H1 2013: €486 million).
Adjusted net income, which reflects the operating performance of the continuing operations, declined by 28 percent to €361 million (H1 2013: €499 million). Adjusted earnings per share therefore decreased from €1.07 to €0.77.
At the end of June 2014, net financial debt was €150 million, partly due to ongoing investment spending and the dividend of €466 million for fiscal 2013, which was paid in May. At year-end 2013 Evonik had net financial assets of €571 million.
Looking ahead to the rest of the year, Evonik still anticipates sales will rise slightly (2013: €12.7 billion) and that adjusted EBITDA will be between €1.8 billion and €2.1 billion (2013: €2.0 billion).
More details in the 2000-word press release.