August 14, 2009

Evonik's sales during the first half of 2009 declined 21 percent on-year to EUR6,281 million as the economic crisis negatively impacted performance.

Demand picked up slightly in the Chemicals Business Area in the second quarter, following a weak start to the year. A perceptible upturn in demand was registered in some industries and regions.

However, volumes were still down substantially year-on-year. As a result, sales slipped 22 percent on-year to EUR4,560 million in the first six months of 2009.

In the Energy Business Area sales fell 15 percent to EUR1,452 million and in the Real Estate Business Area sales grew four percent to EUR184 million.

The Group's EBITDA dropped 34 percent on-year to EUR839 million as a result of one-off operating expenses, especially impairment losses on inventories in the Chemicals and Energy Business Areas.

There is no sign of a fundamental return despite a slight improvement in recent months, said Dr. Klaus Engel, chairman of the Executive Board of Evonik.

To overcome the challenges resulting from the economic crisis in the short term and improve the company's competitive position in the longer term, Evonik is rapidly driving forward its "On Track" efficiency improvement programme. The three main elements of the programme are systematic reorganisation of administrative structures, active portfolio management and tough cost cutting. 

Evoniks plans to save EUR300 million in 2009 alone, though the company is confident of exceeding that target, Engel said.

The company is also making good progress towards its goal of leveraging sustained savings of around EUR500 million per year worldwide by 2012.

Evonik still anticipates that sales and earnings will be considerably lower in 2009 than in 2008 as a result of the ongoing economic crisis and the associated reduction in volumes.