The company expects adjusted EBITDA to remain at least stable compared with last year. Sales are now expected to be slightly lower than the previous year because of lower de-mand. Evonik had expected sales to remain stable. In 2018 Evonik generated - excluding the divested Methacrylates business - sales of €13.3 billion and adjusted EBITDA of €2.15 billion.
“We prepared ourselves at an early stage with stricter cost discipline and additional con-tingency measures for a cooling global economy,” said Christian Kullmann, chairman of Evonik’s executive board. “We are being very proactive to ensure we meet our full-year outlook.”
The 2018 initiated efficiency program to reduce administrative and selling expenses by €200 million annually has been accelerated. By end of this year, Evonik will achieve €120 million of savings, €20 million more than originally planned. A further €20 million will be saved with additional contingency measures such as delaying new hires and more restric-tive expenditure on external services.
Evonik is specifying its full-year outlook for free cash flow and is now expecting a level of approximately €700 million, a significantly higher free cash flow compared with last year.
The global economic slowdown continued to impact Evonik’s performance in the third quarter of 2019. In the months July to September sales fell 3% to €3.23 billion due to lower volumes and selling prices. Adjusted EBITDA fell 6% year-on-year to €543 million.