Evonik says it is well on its way to weathering the crisis.
Nonetheless, sales and revenues were down in the second quarter compared to the same period last year due to significantly weaker demand in certain markets.
The company's sales were down 14 percent to €2.83 billion, while adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) fell 19 percent to €456 million.
Christian Kullmann, Chairman of the Board of Management, said: "Evonik is weathering the crisis." "In the second quarter, we felt the impact of the pandemic. However, the change in the strategic business mix and the implementation of our efficiency program led us to a better first half than we had initially expected. This applies particularly to our strong growth areas."
The Performance Materials business was hit harder by declining demand and low oil prices.
Adjusted net income for the second quarter fell 30 percent year-on-year to €160 million.
Adjusted earnings per share declined from €0.49 to €0.34. Free cash flow increased significantly to €96 million. Lower bonus payments and tax refunds compensated for the impact of lower operating profit and higher net working capital.
"During the crisis, we showed a high level of cash and cost discipline," said Ute Wolf, CFO. "We are beginning to see the first signs of recovery in some markets. However, there are still no widespread problems with economic recovery. The corona crisis is not over yet."
Evonik confirmed its full-year outlook for 2020, which begins on May 7.
The company expects sales to be between €11.5 billion and €13 billion and adjusted EBITDA to be between €1.7 billion and €2.1 billion.
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