(Reuters) -German chemicals group Evonik Industries reported a 22% drop in its third-quarter core profit on Tuesday, citing subdued demand in challenging market conditions, but beat market expectations.
The company’s adjusted earnings before interest, taxes, depreciation and amortisation fell to 448 million euros ($522.5 million) in the quarter. That was ahead of a median forecast of 440 million euros from analysts polled by Vara Research.
“The anticipated recovery in September failed to materialize,” CEO Christian Kullmann said in a statement. “In the short term, this is painful. But longer term, it does not throw us off course.”
The German chemical sector, the country’s third largest industry, has been struggling for years with subdued demand coupled with high energy costs, supply chain issues and a sluggish economy.
The Essen-based company maintained its trimmed 2025 guidance, but refrained from giving a specific core profit estimate for the final quarter of the year, unlike its usual habit.
“Our revised targets for this year are achievable, and we are focused on the long-term, successful implementation of our programs to grow revenues and cut costs,” said Claus Rettig, who took over finance chief duties on an interim basis after CFO Maike Schuh’s departure on September 18.
Many chemicals players, including BASF and Covestro, have lowered their annual forecasts at least once this year, hit by global economic weakness and tariff pressures. With no signs of a near-term recovery, some are banking on cost-cutting measures to shield their margins.
Aiming to slim down its business, Evonik in December 2024 announced the biggest restructuring programme in its history, which it said could reduce its workforce by more than a fifth.
The main initiative, the “Evonik Tailor Made” efficiency programme that aims to establish flatter hierarchies and lower personnel costs, is on track, with 90% of business lines expected to be reorganized the the end of the year, the company said.
($1 = 0.8575 euros)
(Reporting by Anastasiia Kozlova in Gdansk; editing by Milla Nissi-Prussak)
