"Germany is in a recession, Europe as well, and the economy in China is not picking up as we had hoped," CEO Christian Kullmann said in a statement, adding that the second quarter showed no meaningful turnaround for the business.
The company, whose products are used in goods from animal feed and diapers to Pfizer/BioNTech's COVID-19 vaccine, posted adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of 450 million euros ($494 million) for the quarter.
This is above analysts' forecast of 447.6 million euros provided by Vara Research, which were set at the higher-end of Evonik's outlook range of 430 million to 450 million euros.
The energy-intensive chemical sector that serves Germany's key industrial sector is facing an unprecedented drop in order volumes as customers reduce stocks in a high inflationary environment that dampens demand.
The company confirmed its full-year core profit expectations at between 1.6 billion and 1.8 billion euros, adding that it expected no sights of recovery throughout the second half of the year.
In the last two months, a string of chemical companies in Germany, where energy prices are among the highest in Europe, including the industry leader BASF have trimmed their forecasts.
($1 = 0.9104 euros)
(Reporting by Anastasiia Kozlova and Marta Frackowiak in Gdansk; Editing by Edmund Klamann and Sherry Jacob-Phillips)
By Anastasiia Kozlova and Marta Frackowiak
