Evonik Q1 profit up 8% on demand for tyre silica and additives
German chemicals firm Evonik has reported an 8% increase in adjusted profit during Q1 2017. The company’s new additives businesses purchased from Air Products offset a decline in prices of animal feed ingredients and absorbent materials for diapers during the quarter.
Quarterly earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted for one-offs, rose to €612 million ($672 million) on strong demand for silica for tyre manufacturing. The level was slightly ahead of average analyst estimates of €598 million.
Net income fell by a third to a lower-than-expected €160 million, impacted by transaction costs related to the purchase of the Air Products specialty additives division for $3.8 billion. The purchase was final at the beginning of the year. Evonik has spent billions on several takeovers in the specialty chemicals segment to ease its dependence on the volatile poultry feed ingredients business, financial sources report. The firm said it was still aiming for €2.2-2.4 billion in adjusted EBITDA this year, up from €2.17 billion in 2016.