Evonik Industries reports weak Q2 results and lowers full-year financial guidance

German chemical group Evonik Industries has reported weaker-than-expected preliminary Q2 results and lowered its full-year financial guidance due to the ongoing economic recovery slowdown. The company now expects its adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) to be between €1.6bn ($1.8bn) and €1.8bn for the year, down from its previous guidance of €2.1bn to €2.4bn for 2023. Evonik has attributed the decline in performance to the continuing weak demand in its end markets, which has affected a long list of European chemical companies in Q2.

Despite the disappointing news, Evonik's Q2 adjusted EBITDA of €430m to €450m is in line with market expectations of €448m. The company is a market leader in the production of amino acids for animal feed. In April, Evonik announced that it would cut 200 jobs in its pet food division as part of its plan to streamline its high-profit animal nutrition business.

The final Q2 results will be released on August 10. Evonik is not alone in its struggles, as other chemical companies have also lowered their guidance due to weak demand.