ESEEN, Germany (May 27, 2009)—In the first three months of 2009, Evonik Industries A.G.'s sales contracted by 19 percent to $4.4 billion.
In the Chemicals business area, sales receded by 24 percent to $3.1 billion.
The firm's EBITDA dropped 49 percent to $459 million as a result of on-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, 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 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.