Evonik hikes 2021 guidance but quarterly beat lags peers
Aug 5 (Reuters) – Germany’s Evonik Industries (EVKn.DE) raised its outlook after beating second-quarter earnings forecasts on Thursday but its shares fell as analysts pointed to bigger gains at rival chemical makers.
Earnings before interest, taxes, depreciation and amortization (EBITDA) adjusted for one-offs rose 42% to 649 billion euros, topping the 633 million forecast in a company-provided poll.
“Evonik’s second-quarter beat was less than at other EU chemicals,” Baader Helvea analyst Markus Meyer said, but added that the company’s defensive portfolio meant its earnings declined less during the COVID-19 pandemic.
“Due to increased raw material prices, the profit margin in the past quarter fell short of expectations,” a local trader said.
Evonik shares fell 2.7% as of 0945 GMT.
The company raised its 2021 EBITDA outlook to 2.3-2.4 billion euros ($2.7-2.8 billion) from 2.1-2.3 billion euros.
Evonik, whose materials are used in products ranging from animal feed to Pfizer/BioNTech‘s COVID-19 vaccine, is in the middle of a strategic shift towards higher margin specialty chemicals that has helped it ride out the pandemic.
It said its second-quarter earnings were driven by a post-lockdown rebound in the construction, consumer goods and automotive industries, helped by improved pricing in animal nutrition and steady growth in the healthcare business.
Reporting by Bartosz Dabrowski in Gdansk; Additional reporting by Jagoda Darlak; Editing by Clarence Fernandez and Jason Neely
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