zeit.de
Evonik's US Production Mitigates Tariff Risks, Profits Rise
German chemical company Evonik, with 31,900 employees globally, reported a €222 million net profit in 2024, a significant improvement from a €465 million loss in 2023, driven by cost-cutting and a focus on specialty chemicals; 80 percent of its US sales are from products manufactured in the US.
- What are the potential long-term implications of Evonik's restructuring on its competitiveness and market position?
- Evonik's restructuring, involving a reduction of 2,000 positions by the end of 2026 and the creation of two new divisions ('Custom Solutions' and 'Advanced Technologies') starting April 2025, aims to enhance efficiency and profitability. This streamlining, coupled with its geographically diversified operations, positions Evonik for sustained success in a volatile global market.
- How did Evonik's strategic focus on specialty chemicals and cost reduction contribute to its financial performance in 2024?
- Evonik's substantial American operations, employing 5,000 people, insulate it from the negative impacts of US trade barriers. This strategic positioning, coupled with cost-cutting measures and a focus on profitable specialty chemicals, contributed to a 25 percent increase in adjusted EBITDA to €2.1 billion in 2024, despite a slight revenue decrease.
- What is the impact of US trade policies on Evonik, and how does the company's geographic diversification mitigate potential risks?
- Evonik, a German chemical company, generates 30 percent of its revenue in the Americas, primarily the US, where it manufactures roughly 80 percent of its products. This significant US presence provides a buffer against US tariffs, potentially even offering an advantage.
Cognitive Concepts
Framing Bias
The article frames Evonik's response to US tariffs and its restructuring positively, emphasizing the CEO's confident statements and the company's financial success. The headline (if any) and introductory paragraph likely reinforce this positive framing. The focus on profit and job cuts, without equal emphasis on potential negative consequences, shapes reader perception towards a narrative of success and resilience.
Language Bias
The language used is largely neutral and factual, reporting on financial figures and executive statements. However, phrases such as "robustly wahrgenommen" (robustly perceived), when describing the US government's response, could be interpreted as subtly positive and possibly influenced by the source's viewpoint. More neutral phrasing could be used such as "actively addressed".
Bias by Omission
The article focuses heavily on Evonik's CEO's statements and the company's financial performance. It omits potential counterarguments or perspectives from critics of Evonik's business practices, or from those affected by job losses. The lack of information regarding the environmental impact of Evonik's operations is also a notable omission. The impact of the restructuring on the remaining employees is not discussed in detail. While brevity may be a factor, these omissions limit the reader's ability to form a complete picture.
False Dichotomy
The article presents a somewhat simplistic view of Evonik's position regarding US tariffs. While Kullmann suggests Evonik benefits, the nuanced economic implications of tariffs and global trade are not explored. The framing of the restructuring as solely positive, without acknowledging potential downsides for employees or the broader economy, also contributes to a false dichotomy.
Gender Bias
The article focuses primarily on the statements and actions of male executives (Kullmann and Wessel). While this is consistent with the topic of a corporate press conference, it lacks other perspectives that might offer more gender balance. There is no discussion of gender representation within the company's workforce or management.
Sustainable Development Goals
Evonik's actions demonstrate a commitment to economic growth through restructuring for increased profitability and maintaining a significant workforce despite job reductions. The company's focus on profitable businesses and cost-cutting measures contribute positively to economic growth. While job reductions are mentioned, they are described as socially responsible, aiming for natural attrition and early retirement rather than mass layoffs. The stable dividend also reflects positive economic performance.