Sales increased to €3.9 billion in the second quarter (prior-year: €3.6 billion), largely due to higher sales volumes and higher selling prices. Adjusted net income was €354 million, which corresponds to adjusted earnings per share of €0.76. The adjusted EBITDA margin improved to 19.2%, 1.5 percentage points higher than in the same period of the previous year.
Evonik is well on track in terms of free cash flow development. While free cash flow is usually negative in the second quarter because of variable compensation payments, it improved by €248 million and was positive at €56 million (prior year: -€192 million). This was primarily due to improved operating income.
“We are pleased to confirm the strong results that we already pre-released,” said Christian Kullmann, chairman of the Executive Board. “The implementation of strategic measures and a higher awareness of cost is increasingly reflected in our operating business development and a significantly improved cash flow.”
In the first half of the year 2018, Evonik generated sales of €7.5 billion and an adjusted EBITDA of €1.4 billion. Compared to the first half of 2017, sales rose by 4%, and adjusted EBITDA by 15%. The adjusted EBITDA margin rose from 17.0 to 18.8%. Free cash flow rose in the first half to €140 million (prior year: -€135 million).
Development in the Segments
The Resource Efficiency segment continued its stable and profitable development in the second quarter. Sales increased by 8% to €1.5 billion, while adjusted earnings were 15% above the same quarter of the previous year at €366 million. The adjusted EBITDA margin in the segment increased by 1.4 percentage points to 24.7%. Overall, the segment benefited from high capacity utilization and continuing high demand for silica, high-performance polymers, including for lightweight design, and for water-based, environmentally friendly paints and coatings from the Coating Additives business line.
Sales in the Performance Materials segment reached €1.0 billion in the second quarter, 13% above the previous year. This was due to persistently high selling prices in the methacrylate business and an improved market environment for Performance Intermediates. The adjusted EBITDA improved by 17% to €196 million. The Performance Materials segment increased its adjusted EBITDA margin to 19.1% (prior-year: 18.5%).