(Reuters) – German chemicals group Evonik Industries reported third-quarter core profit above market expectations on Wednesday, and said its initiatives to cut costs and build a leaner organisation were paying off.
Evonik posted a 19% rise in quarterly adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) to 577 million euros ($622 million), beating analysts’ median forecast of 572.7 million euros in a poll compiled by Vara.
“Our adjusted EBITDA and free cash flow trends are clearly pointing in the right direction – upward,” Chief Financial Officer Maike Schuh said in the statement, adding that the success was based on Evonik’s shift towards high-margin growth businesses and cost discipline.
The company had in March said it would cut up to 2,000 jobs worldwide by 2026, with some 1,500 of them in Germany, to reduce annual costs by 400 million euros.
In October, Evonik said it planned to scale back its adhesives and health care lines to focus on the core parts of those businesses, while shedding other non-core operations.
Its free cash flow fell to 357 million euros in the quarter from 469 million a year ago. It said this was due to a more even distribution of cash inflows in the first nine months of the year.
($1 = 0.9276 euros)
(Reporting by Anastasiia Kozlova in Gdansk; editing by Milla Nissi)
