Based on the results of the first half of 2019, Covestro has confirmed its guidance for the current fiscal year.
As expected, ongoing intense competitive pressure and uncertainties in major sales markets persisted into the second quarter.
Whereas core volumes rose by 1.1 per cent, Group sales fell to €3.2 billion, down 16.9 per cent, due to lower selling prices.
At €459 million, EBITDA stabilised at the level of the first quarter of 2019, but remained well under to outstanding result achieved in the prior-year quarter.
The decline in earnings resulted mainly from lower margins in the Polyurethanes and Polycarbonates segments.
Net income declined to €189 million, while free operating cash flow amounted to minus €55 million on account of lower cash flows from operating activities and higher investments.
Dr Markus Steilemann, CEO of Covestro, said: “The economic situation is still challenging, since global economic and political uncertainties remain.”
“Nonetheless, we reached our earnings targets and were able to increase our core volumes again in the second quarter. This underscores the trend towards more sustainable solutions, which we offer to many industries.”
Dr Thomas Toepfer, CFO of Covestro, said: “Our half-year results met our expectations in the current economic environment. Thus, we confirm our guidance for the fiscal year.”
“At the same time we will closely follow further developments in our major sales markets. The automotive industry developed much weaker than expected, on the other hand the construction sector, as well as the wood and furniture industry, evolved better.”