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UPDATE 1-Evonik Q1 core profit up 8 pct on demand for tyre silica, additives
May 5, 2017 / 6:06 AM / 5 months ago

UPDATE 1-Evonik Q1 core profit up 8 pct on demand for tyre silica, additives

* Addition of Air Products unit boosts quarterly profit

* Saw strong demand for silica chemicals for tyres

* Lower prices in feed ingredients, diaper materials

* Q1 adj EBITDA up 8 pct at 612 mln eur vs poll avg 598 mln (Recasts lead, adds net income decline,)

FRANKFURT, May 5 (Reuters) - German’s Evonik saw adjusted core profit increase 8 percent in the first quarter as new additives businesses purchased from Air Products Inc offset a decline in prices for animal feed ingredients and absorbent materials for diapers.

Quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA), adjusted for one-offs, rose to 612 million euros ($672 million), also bolstered by strong demand for silica chemicals for tyres.

That was slightly ahead of the average analyst estimate of 598 million in a Reuters poll.

The group, controlled by a public-sector trust that will bear the liabilities from disused German coal mines, has spent billions on a string of takeovers in specialty chemicals to ease its dependence on a volatile poultry feed ingredients business.

Evonik said it was still aiming for 2.2-2.4 billion euros in adjusted EBITDA this year, up from 2.17 billion euros in 2016.

Net income fell by a third to a lower-than-expected 160 million euros, burdened by one-off transaction costs related to the purchase of Air Products’ specialty additives division for $3.8 billion, which it wrapped up at the beginning of the year.

$1 = 0.9104 euros Reporting by Ludwig Burger; Ediing by Victoria Bryan

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