* 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 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)