Home / Knowledge / News / Textiles / Evonik sees good results in a challenging business environment
Evonik sees good results in a challenging business environment
18
Aug '08
The Evonik Group grew sales 11 percent year-on-year to €7,926 million between January and June 2008 (H1 2007: €7,166 million). The Chemicals Business Area reported organic growth of 12 percent, with 8 percentage points coming from higher prices and 4 percentage points from increased volumes.

After adjustment for exchange rate movements (minus 4 percentage points) and changes in the scope of consolidation (plus 3 percentage points), this business area's sales increased 11 percent to €5,873 million. In the Energy Business Area sales increased by 16 percent to €1,713 million (H1 2007: €1,472 million), principally because of higher coal prices, which were passed on to customers. The Real Estate Business Area lifted sales 4 percent to €170 million (H1 2007: €164 million).

Successful in all three business areas
EBIT (earnings before interest, income taxes and exceptional items) rose even faster than sales in the first six months of 2008. The significant rise of 17 percent to €869 million (H1 2007: €742 million) was driven by higher earnings from all three business areas.

In the Chemicals Business Area EBIT rose by a substantial 17 percent to €608 million (H1 2007: €522 million), principally due to far higher demand, increased capacity utilization and effective restructuring in recent years. The strength of the euro had a negative impact.

The clear improvement in some selling prices was negated by another sharp rise in raw material and energy costs. The internal raw material cost index, which shows the change in the price of major raw materials in the Chemicals Business Area, rose by 19 percent in the first six months compared with the same period of the previous year. Energy costs increased by 11 percent.

The Energy Business Area increased EBIT by 13 percent to €301 million (H1 2007: €267 million). The main factors here were higher profit from foreign power plants, improved earnings from free market sales of power generated by German power plants and a rise in earnings from coal trading. On the other hand, the upward trend was held back by exchange rates.

The Real Estate Business Area lifted EBIT to €86 million, a considerable rise compared with the year-back figure of €39 million. This was primarily due to earnings from THS, which has been included in the financial statements at equity since December 2007, and gains from sales of commercial property business which were agreed last year and took place in the first quarter of this year.

High investment:
Overall, the pleasing rise in operating earnings led to net income of €522 million. The prior-year figure of €715 million was boosted by substantial one-off factors, especially gains from the divestment of the mining technology company DBT.

The cash flow from operating activities for the continuing operations came to €175 million in the first half of 2008, well below the prior-year figure of €407 million.


Must ReadView All

Apparel/Garments | On 23rd Sep 2017

AAFA urges negotiators to preserve TPLs in NAFTA

The American Apparel & Footwear Association (AAFA), an alliance of...

Textiles | On 23rd Sep 2017

SIMA urges Centre to re-look duty drawback rates

he Southern India Mills’ Association (SIMA) has appealed to the...

Textiles | On 23rd Sep 2017

PKR 690.65-mn budget for Pakistan Cotton Committee

The Pakistan Central Cotton Committee (PCCC) recently approved a PKR...

Interviews View All

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search