The company, whose products are used in items from animal feed and diapers to Pfizer/BioNTech's COVID-19 vaccine, expects adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of 2.1 billion to 2.4 billion euros ($2.23 billion to $2.55 billion) this year.
This compares to 2.49 billion euros it reported for 2022, which was slightly below analysts' forecast of 2.53 billion euros in a company-provided poll.
Evonik said the outlook was "cautiously optimistic" after a difficult second half of 2022, marked by economic uncertainties and falling selling prices of its animal nutrition products as clients cut their stocks.
The group expects these negative trends to continue in the first quarter of 2023, but the situation should gradually improve after that.
Evonik's adjusted EBITDA fell 18% to 413 million euros in the fourth quarter, mainly driven by a 39% slump in its Nutrition & Care division.
The fourth-quarter net loss was 284 million euros against a profit of 106 million a year earlier, mainly due to a goodwill impairment of 301 million euros in its performance materials business.
In December, Germany's VCI chemical association said it expected the sector's industrial production to further decline this year, as Russia's war on Ukraine and supply bottlenecks were set to further hamper activity.
Evonik also specified its cost savings target to 250 million euros through measures such as restrictions on business travel and trade shows, limited use of external consultants and disciplined hiring.
($1 = 0.9397 euros)
(Reporting by Antonis Pothitos and Tristan Chabba in Gdansk; Editing by Milla Nissi)
