Issue 15/2018 - Chemical giant's Q2 results:

Chemical giant's second-quarter results at a glance:

In the second quarter of 2018, BASF grew slightly in sales and earnings, with global sales of €16.
8 billion, up 3 percent, and EBIT before special items of €2.
4 billion, up 5 percent
.
With the exception of the Feature Products segment, sales volumes increased
in all other segments.
Higher selling prices, particularly in the Functional Materials & Solutions and Oil & Gas segments, were the main drivers of
growth.
In the first half of 2018, sales increased by €307 million year-on-year to €33.
4 billion, and EBIT before special items increased by €160 million to €
4.
9 billion.


WACKER generated sales of €1,329.
9 million in the second quarter of 2018, up 9 percent
year-on-year.
Higher prices, especially silicones, increased volumes of chemical products and a good product mix in the chemical business contributed to the increase
in sales.
Adjusted EBITDA for the second quarter increased 3% year-on-year and 2% sequentially
, with an EBITDA margin of 19.
6% of €260.
5 million.
Earnings before interest and taxes (EBIT) amounted to €125.
0 million in
the second quarter.
Net profit for the second quarter of 2018 amounted to EUR 83.
5 million, compared to EUR 60.
5 million in
the second quarter of 2017.
The increase was due to higher prices for chemical products and higher
income from WACKER's equity investment in Siltronic AG.
WACKER expects Group sales to continue to grow in 2018 compared to 2017, by a low-single-digit percentage
.
EBITDA is expected to achieve a mid-single-digit percentage growth
.
The Group's full-year net profit from continuing operations will increase
significantly.
In the absence of a sudden deterioration in the economic situation, WACKER is on track to exceed its current full-year profit forecast
.


Evonik's EBITDA amounted to EUR 742 million in the second quarter of 2018, compared to EUR 640 million
in the second quarter of 2017.
All three Chemicals segments contributed to its strong performance: Adjusted EBITDA and EBITDA margins increased
compared to the prior-year quarter.
Sales increased to €3.
9 billion and adjusted net income to €354 million
in the second quarter due to higher volumes and higher selling prices.
In the first half of 2018, Evonik generated sales of €7.
5 billion, adjusted EBITDA of €1.
4 billion and an adjusted EBITDA margin of 18.
8 percent
.
Compared to the first half of 2017, sales increased by 4%, adjusted EBITDA increased by 15% and adjusted EBITDA increased by 1.
8%.

Based on the excellent performance in the first half of the year, Evonik has raised its full-year 2018 forecast, expecting adjusted EBITDA to be 2.
6 billion ~ 2.
65 billion euros
.


Covestro generated sales of €3.
9 billion in the second quarter of 2018, up 10.
4 percent
year-on-year, due to higher selling prices and increased demand.
EBITDA amounted to €985 million, up 16.
2 percent
year-on-year.
Net profit was EUR 604 million, up 24.
8%
year-on-year.
Covestro performed strongly in the first six months of 2018, with sales of €7.
6 billion, up 7.
9 percent year-on-year.
Group core business volume increased by 2.
2% year-on-year in the first six months; EBITDA reached around €2 billion, up 20.
9 percent year-on-year; Net profit amounted to EUR 1.
2 billion, up 31.
1 percent
year-on-year.
In view of the strong results in the first half of the year, Covestro decided to raise its EBITDA expectations for 2018
.
The Company will maintain
its forecast of mid- to low-single-digit percentage growth in core volume in 2018.
In addition, due to the steady growth of major customer industries, the company increased the investment scale to 650 million ~ 700 million euros
.


Honeywell's second-quarter 2018 sales were $10.
919 billion, up 8%
year-over-year, driven by continued strength in the aerospace business, rising demand for Intelligrated warehouse automation solutions, and growth in the Thermal Solutions, Thermostat and ADI global distribution businesses in the Home business.
The company delivered continued sales growth, strong margin improvement, and double-digit free cash flow growth
.
In addition, short-cycle demand for process automation solutions continues to be strong
.
Based on the strong performance in the second quarter and confidence in the future prospects, the company expects full-year sales of 43.
1 billion ~ 43.
6 billion US dollars
.


PPG reported net sales from continuing operations of $4.
1 billion, up nearly 9%
year-over-year, to $4.
1 billion in the second quarter of 2018, driven by steadily increasing volumes (up more than 3 percent) and higher selling prices.
Net income from continuing operations for the second quarter was $371 million, compared to adjusted net income of $468 million
.
Based on previously announced customer classification changes for its U.
S.
architectural coatings business, PPG has launched a new restructuring program that will reduce costs
by approximately $85 million annually when fully implemented.
Looking ahead, it is expected that cost pressure will not ease in the third quarter, and the previously announced adjustment of architectural coatings customer classification will lead to a 120~150 basis point
reduction in sales growth in the third quarter.