From Rubber & Plastics News
Essen, Germany -- In the first three months of 2009, Evonik Industries AG's sales contracted by 19 percent to $4400 million.
In the Chemicals business area, which includes the company's Evonik Goldschmidt polyurethane additives business unit, sales receded by 24 percent to $3100 million.
The firm's earnings (EBITDA) dropped 49 percent to $459 million as a result of one-off operating expenses, especially impairment losses on inventories in the Chemicals and Energy business areas following a further drop in raw material prices.
Citing the poor business trend resulting from the economic situation, Evonik said net income was $63.7 million in the red in the first quarter of 2009 compared with a profit of $393 million in the same period of 2008.
Evonik said it is giving priority to protecting liquidity and earnings.
The company has reduced investment in property, plant and equipment by 30 percent to $220 million in the first quarter of 2009, compared with the first quarter of 2008. It also cut net working capital considerably.