Germany. Evonik announced a 1% increase in sales during the first quarter of 2019, reaching 3,670 million dollars (3,290 million euros), with an improvement of USD 121.6 million in cash flow (EUR 109 million) compared to the same period last year.
However, non-recurring upfront costs for new production units and a temporary hiccup in raw material supply in the Performance Materials segment contributed to a 3% decline in Adjusted EBITDA to USD 601 million (EUR 539 million).
"Despite the weakening of the global economy, we managed to maintain our position in terms of volumes and results," says Christian Kullmann, Chairman of the Executive Board of Evonik. "In terms of free cash flow, we managed to record a significant gain. Overall, our portfolio is now more robust than before in relation to macroeconomic trends. The divestment of our methacrylate business contributed to this," he explains.
The company reveals in its earnings report that, due to the sale of the methacrylate business, the outlook for continued operations was revised and it now expects adjusted EBITDA values and sales to remain at least at the same level as last year.
Evonik also reported the performance in the period of each segment: in Resource Efficiency sales grew 3% to USD 1,561 million (EUR 1,400 million) mainly due to the increase in sales prices; in Nutrition & Care sales also grew 3% to USD 1,283 million (EUR 1,150 million) due to the increase in sales volume, although sales prices decreased; while in Performance Materials sales were reduced by 7% to USD 624 million (EUR 559 million) due to lower sales volumes, falling prices and negative effects of the change.
