Leverkusen, Germany – Covestro’s third quarter 2015 sales were down 1.4% compared to the same period in 2014 but margins improved because of lower raw material costs.
Volumes were down by 0.6% and prices fell by 7.4% across the polyurethane and polycarbonate business, compared to the same period in 2015, when Covesto was the Bayer's MaterialScience division.
These declines were offset by currency movements which improved results by 6.6%, the company said.
Sales in the polyurethane segment at EUR 1.512bn were down 8.5% on the EUR 1.625 bn recorded in the third quarter of 2014. This is due to lower selling prices for TDI and MDI, polyester polyol prices, said Covestro. The firm added that these price declines were due to lower purchasing prices for raw materials, which were passed on to consumers.
In the polycarbonates sector, sales were up 13% to EUR 819m and were driven by volumes. Sales in the coatings, adhesives and specialities segment were up 2.6% at EUR519m compared with Q3 2014 because of currency effects which offset a decline in volumes.
Earnings before interest, taxation, depreciation and amortisation was EUR 455m compared with EUR 324m in Q3 2014. This was due to “a significant decline in raw material prices, which against the backdrop of a more favorable supply and demand situation more than offset a decline in selling prices. Currency effects of EUR 70m also contributed positively to this increase in earnings,” said the firm.
“Our first results as an independent company show that our business remains on the right track,” said Patrick Thomas, Covestro ceo.