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UPDATE 1-Evonik's Q4 core profit down on lower feed ingredient prices
March 2, 2017 / 6:52 AM / 9 months ago

UPDATE 1-Evonik's Q4 core profit down on lower feed ingredient prices

* Q4 adj EBITDA 437 mln eur vs Rtrs poll avg 432 mln

* Expects increase in 2017 adj EBITDA to 2.2-2.4 bln eur

* Feed ingredient price declines to level out going into ‘17 (Adds details on businesses that saw price declines, background on takeover deal)

ESSEN, Germany, March 2 (Reuters) - German diversified chemicals maker Evonik on Thursday reported a 13 percent decline in adjusted core profit for the fourth quarter due to lower prices for its poultry feed ingredients and absorbent materials for diapers.

Quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA), adjusted for one-offs, fell to 437 million euros ($460 million), slightly ahead of the average analyst estimate of 432 million euros.

In the year-earlier period, the feed ingredients business was bolstered by rivals’ production outages.

Evonik said it was aiming for 2.2 to 2.4 billion euros in 2017 adjusted EBITDA, up from 2.17 billion euros in 2016.

The company, which also makes clear acrylic sheet and rubber chemicals, said it expected price declines for its feed ingredients, which are sulfur-containing amino acids mainly used for poultry, “to level out going into 2017”.

At the beginning of the year, Evonik wrapped up the acquisition of Air Products’ specialty additives division for $3.8 billion, a maker of ingredients for insulation foams, sun lotion and coatings, to reduce dependence on the volatile animal feed business.

$1 = 0.9496 euros Reporting by Matthias Inverardi; Writing by Ludwig Burger

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