German specialty chemicals producers Evonik and Lanxess reported stronger third-quarter earnings, with higher selling prices, improved demand in selected businesses and cost-reduction measures supporting results despite weak industrial markets and elevated energy costs.
Evonik’s adjusted pre-tax earnings increased 40% year over year to €629 million, while sales rose 13% to approximately €3.8 billion. Its custom solutions segment, which includes additives for lubricants, scored a 7% increase in adjusted earnings to €231 million.
The company reported improved demand for oil additives and products for the paints and coatings industry.
Lanxess made third-quarter sales of €1.47 billion, up 9.6% from the previous year, while earnings before exceptional items increased 11.2% to €139 million. Its specialty additives segment recorded the strongest earnings growth, with pre-tax earnings up 57.8% to €71 million.
Higher selling prices helped offset increased raw material and energy costs, while cost savings provided further support. The company also returned to positive free cash flow of €48 million, compared with an outflow of €14 million a year earlier.
Lanxess’ management cautioned that demand across several core markets, including automotive, construction and agrochemicals, remains weak.