Covestro has released its first quarter results, which, as expected, were influenced by higher competitive pressure.
Despite an overall solid demand, core volumes decreased slightly by 1.8 per cent, mainly due to lower volumes in the Polycarbonates segment.
A marked drop in selling prices led to a reduction in Group sales by 16 per cent to €3.2 billion, while net income also fell by 72.2 per cent.
Although on the whole significantly below the outstanding results of the prior year’s quarter, results remain in the expected range and Covestro has confirmed its targets set for the year as a whole.
Dr Markus Steilemann, CEO of Covestro, said: “The first quarter was in line with our guidance and confirms our subdued expectations for the full year.”
“It is therefore even more important to now set the right course for our future growth with investment and efforts to improve efficiency. After all, demand for our innovative and sustainable materials remains intact.”
Dr Thomas Toepfer, CFO of Covestro, said: “The prior-year quarter was influenced by exceptionally high margins in a number of product groups.”
“In line with our expectations, our results therefore fell below those of the same period of last year. In anticipation of continued challenging influencing results throughout the year, we are especially focusing on efficient production and processes and targeted investments.”