Evonik predicts stable earnings in 2010

Germany-based Evonik is hopeful that a recent upturn in volumes will lead to stable earnings in 2010, despite a drop in sales in 2009.

The company said it expects 2010 sales to rise on-year, while earnings before interest, taxes, depreciation and amortisation (Ebitda) should at least match the 2009 level of EUR2 billion (US$2.7 billion).

Dr. Klaus Engel, Evonik CEO said that even though the economic outlook is still uncertain, he believes the company has the potential for positive surprises.

In 2009, Evonik sales dropped 18% to EUR13.1 billion (US$17.5 billion). However, Ebitda dropped only 6% to EUR2 billion in 2009 – compared to a 34% decrease for the first six months of the year. The company attributed the improvement to strict cost discipline.

Cost savings were EUR500 million (US$669 million) for the year and the company reduced its net financial debts by EUR1.2 billion (US$1.6 billion) to EUR3.4 billion (US$4.5 billion).