July 31, 2014 / 6:30 AM / 3 years ago

UPDATE 1-Evonik says 2014 adj core profit may fall below 2013 level

* Confirms outlook for 2014 core profit of 1.8-2.1 bln eur

* If prices for key products stay weak may be at the low end

* Q2 adj EBITDA at 473 mln eur vs poll avg of 472 mln eur (Adds detail, background)

FRANKFURT, July 31 (Reuters) - German diversified chemicals maker Evonik on Thursday said a worse-than-expected price trend in its Specialty Materials unit may result in a drop in core profit for the full year.

The maker of feed additives, clear acrylic sheet and high-tech plastics, controlled by a state-owned trust, said the downward move in some key products had slowed perceptibly in recent months and it expects this trend to continue.

But so far this positive trend did not apply to the Specialty Materials segment, which makes polymer materials and intermediates for the rubber and plastics industry, where prices have remained below the original expectations, Evonik said.

If this should continue for the rest of the year, full-year adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) will probably be in the lower range of its guidance of between 1.8 billion euros ($2.4 billion) and 2.1 billion, the company said.

The group reported a 7 percent drop in second-quarter adjusted EBITDA to 473 million euros, in line with analysts’ expectations of 472 million.

Group sales grew 1 percent to 3.25 billion euros, also in line with analysts’ expectations.

Germany’s second-largest chemicals maker behind BASF said it still expected 2014 sales to rise slightly. In 2013, it posted sales of 12.7 billion euros.

Last week, BASF reported lower-than-expected earnings growth, mainly due to negative currency effects. ($1 = 0.7466 Euros) (Reporting by Kirsti Knolle; Editing by Harro ten Wolde and David Holmes)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below