ESSEN (dpa-AFX) - A cost-cutting program and the sales trend in the Specialty Additives Business Unit make the specialty chemicals group Evonik more optimistic about its earnings performance in the current year. Added to this is a price recovery in the Animal Nutrition Business Unit for the deep-frozen protein methionine. Earnings before interest, taxes, depreciation and amortization (EBITDA) adjusted for special items are expected to be between €1.9 billion and €2.2 billion in 2024, compared to the previously targeted €1.7 billion to €2.0 billion, as the MDax company announced on Monday.

According to data provided by the company, analysts' estimates as at the end of May were already at the upper end of the old range. Since then, however, there have been more and more positive comments, such as last week from expert Chetan Udeshi from the bank JPMorgan. The share price reacted negatively on Monday and was recently down 1 percent.

Udeshi had pointed to a likely continuation of the earnings recovery in the second quarter, which would generally no longer be a surprise. In view of the bumpy demand development at some other chemical companies, investors are therefore likely to wait for further improvements in the second half of the year before Evonik shares could continue to outperform.

Based on preliminary figures, the operating result rose by 29 percent year-on-year to €578 million in the second quarter. Sales stagnated in the second quarter at around €3.9 billion.

Evonik plans to publish its final figures on August 1./mis/jha/