In the specialty additives division, sales increased 21 per cent to €1,116 million in the second quarter. This can be attributed to the effective rise in prices to offset higher variable costs. Consequently, products in the construction and coatings industry and within renewable energies saw higher turnover. Additives for polyurethane foams and for paints and coatings also benefited from this price increase, the company said in a press release.
“We had a strong first half of the year, and once again have successfully managed the challenges around us,” said Christian Kullmann, chairman of the executive board. “Regarding the increasing uncertainties, especially on the energy side, we reckon these challenges will prevail and potentially even accelerate in the second half of the year.”
To mitigate risk, Evonik has established a set of measures to substitute natural gas at their main sites. At the Marl site, for example, full substitution of natural gas will become possible with a switch to LPG (Liquefied Petroleum Gas) and the continued operation of the coal-fired power plant. “We have implemented a bundle of strong measures at our European sites to secure our energy supply and support the EU and German energy savings targets,” said Kullmann.
The war in Ukraine and lockdown measures in China continue to impact value chains. On a case-by-case basis, Evonik prepares alternative logistic solutions to ensure production is running and customers will receive products.
“Based on our strong first half of the year and even assuming a gradual economic slowdown in the second half, we not only confirm our outlook for adjusted EBITDA – we even think that the upper end at €2.6 billion is well underpinned,” said Ute Wolf, chief financial officer. “We will now put extra effort into the management of our net working capital. This should support free cash flow for the rest of the year and throughout the next.”
For full year, sales expectations are now between €17 billion and €18 billion. This raise from the previous guidance range of €15.5 billion to €16.5 billion can mainly be attributed to an increase in prices to offset higher variable costs.
Fibre2Fashion News Desk (RR)