Germany's Evonik posts second-quarter core profit below market view

Evonik Industries AG

01/08/2025 06:00

Aug 1 (Reuters) - German chemicals group Evonik Industries EVKn.DE reported second-quarter core profit below market expectations on Friday, hurt by weak demand and a challenging market environment.

It posted a 12% drop in adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) to 509 million euros ($581.3 million) in the April-June quarter. This was below a 511 million-euro forecast by analysts in a Vara Research poll.

The group also said it expects adjusted EBITDA at the lower end of a 2 billion-2.3 billion euro forecast, provided the global economy does not weaken further.

Analysts' median forecast for 2025 core profit stands for 2.02 billion euros, according to Vara Research.

Evonik reported an 11% year-on-year decline in sales to 3.5 billion euros, mostly due to currency headwinds and the sale of its superabsorbents business, which was still part of the company through the second quarter of 2024.

The German chemicals sector, the country's third-largest, has been struggling for years with subdued demand, high energy costs, supply chain issues and an overall economic slowdown.

($1 = 0.8756 euros)

 (Reporting by Anastasiia Kozlova; editing by Sonia Cheema)

 ((Anastasiia.Kozlova@thomsonreuters.com))