Evonik sees Q3 core profit in line with Q2, confirms 2024 outlook

By Anastasiia Kozlova and Amir Orusov

(Reuters) -German chemicals group Evonik Industries on Thursday said it expected its core profit for the third quarter to be similar to that of the second quarter.

It confirmed the preliminary figure for second-quarter adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of 578 million euros ($626 million), as reported in July.

Strict cost discipline and good volume development at its speciality additives business have so far helped Evonik overcome the difficult market environment.

"We are cutting our costs and doing our homework - and it shows," CEO Christian Kullmann said in a statement about the restructuring measures, adding that there was no real tailwind from the economy.

In March, Evonik said it would cut up to 2,000 jobs worldwide, with some 1,500 of them in Germany by 2026, to reduce costs by 400 million euros annually.

To implement those reductions, the company booked provisions of 238 million euros in the second quarter, which were largely responsible for the net loss of 5 million euros in the quarter.

Evonik, whose chemicals are used in products from autos and animal feed to Pfizer and BioNTech's COVID vaccine, confirmed its annual outlook for an adjusted EBITDA of between 1.9 billion and 2.2 billion euros, which it raised last month.

The outlook for its other key financial figures also remains unchanged, Evonik said.

"The improvements in our key financial figures compared to the previous year are really encouraging," Chief Financial Officer Maike Schuh said in a statement.

"However, the current recovery compares to a very weak 2023, and we are still a long way from reaching our goals," Schuh added.

Evonik said it expected to complete the sale of its superabsorbents business during the third quarter.

($1 = 0.9232 euros)

(Reporting by Anastasiia Kozlova and Amir Orusov in Gdansk; editing by Milla Nissi)