ESSEN (dpa-AFX) - In a persistently difficult market environment, chemicals group Evonik expects profits to decline in the current year. Sales are expected to come out at 17 to 19 billion euros in 2023, while adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) are expected to be between 2.1 and 2.4 billion euros and thus below the previous year, the MDax group announced on Thursday. Headwinds include a decline in the price of animal feed protein methionine. The median analyst estimate for operating profit is 2.26 billion euros, roughly in the middle of the range. Experts had therefore already expected a decline. However, free cash flow is expected to increase in 2023, according to Evonik. At Lang & Schwarz, shares were down just under 1 percent in the early morning.

"Our forecast range is broader than in the previous year in view of the ongoing uncertainties," Evonik CEO Christian Kullmann said, according to the statement. He also wants to achieve the target with cost savings of €250 million. Kullmann had already announced a savings program in the fall. It is to be implemented, among other things, through restrictions on business trips and trade fair appearances and on the use of external consultants, and a closer look is also to be taken at new hires, it was said at the time.

Despite a weak final quarter, Evonik increased its operating profit slightly to €2.49 billion in 2022. Analysts had hoped for somewhat more. The Essen-based company earned 540 million euros on the bottom line, compared with 746 million euros in the previous year, while sales - driven by price increases - rose by almost a quarter to just under 18.5 billion euros. The dividend is to remain stable at 1.17 euros.

Free cash flow fell from €950 million to €785 million in 2022. However, Evonik made up considerable ground in the final quarter, after swelling inventories had previously also weighed on the figure./mis/nas/stk