International. Evonik announced a good start to 2018. Adjusted EBITDA grew to €679 million in the first quarter, a significant increase of 14% over the same period last year. All three chemical segments contributed to the revenue growth.
"We are implementing our new strategy firmly," said Christian Kullmann, Chairman of the Board. "With a focus on innovation and a performance-oriented corporate culture, we are working to ensure profitable growth. Our goal is a balanced portfolio focused on specialty chemicals."
Sales rose 1% to €3.68 billion in the first quarter, driven mainly by slightly higher sales volumes, plus better selling prices. The change had a reverse effect, especially because of the weaker dollar.
Adjusted EBITDA margin increased to 18.5% (prior year quarter: 16.4%). Adjusted net income increased to €333 million and adjusted earnings per share rose to €0.71 million. Free cash flow increased to €84 million (prior year quarter: €57 million)
due to the reduction of capital expenditures.
Resource Efficiency: Sales increased 3% to €1.4 billion in the first quarter. The consolidation of J.M. Huber's acquired silica business in September last year and the increase in sales prices contributed to that increase.
The Coating Additives business line was in strong demand, especially in the Asia-Pacific region, and Crosslinkers' line performance in Europe was equally satisfactory. Adjusted EBITDA for the Resource Efficiency segment grew by 9% to €325 million.
Performance Materials: Sales grew by 4% in the first quarter, closing at 995 million euros. The increase was due to higher selling prices, although the change had a negative effect. The Methacrylates line of business continued to perform positively, recording a considerable increase in sales. Demand remained satisfactory, especially in the automotive and coatings industries, although supply remained weak. Adjusted EBITDA for the Performance Materials segment improved by 14% to €179 million.
