Leverkusen, Germany – Covestro saw sales in its polyurethanes business rise 27.5% in the second quarter of 2017, despite a 2.3% fall in volumes, according to its half year report.
Covestro earnings benefit from market tightness in first half
Over the first year, sales were up 31% in the division to EUR 37 bn on volumes which were up 2.1%.
Earnings before interest, taxation and amortisation in the second quarter at EUR 556 m and in the first half of EUR 1 bn were both up over 100% compared with the previous year periods, according to the firm.
The bulk of these increases came from increased prices which were up 26% in the first half of 2017 compared with the first half of 2016.
In its discussion of these results, Covestro said that second half sales levels were down slightly because of the polyether product group and ‘constrained product availability of MDI and TDI.’ Covestro reconfirmed that it will increase capacity at Brunsbuttel, Germany to ‘around 400 kT/year by the end of 2018.’
Sales in Covestro’s Coating, Adhesives and Specialties business were flat at EUR 533 m in the second quarter of 2017, compared with the 2016 quarter and up 5% in the first half of 2017 at EUR 1 bn.
This division suffered from higher raw material prices and a slight decline in volumes in the second quarter of 2017 compared with 2016.
Chief commercial officer, Markus Steilemann, said ‘we want to continue to take advantage of the ongoing robust demand for our products as much as we can. Especially in polyurethanes and polycarbonates, we will invest in our production plants and eliminate bottlenecks.’