Cologne, Germany — Covestro saw earnings before interest tax depreciation and amortisation (EBITDA) up 41.3% to EUR 1.64 bn ($1.8bn) compared to 2014, according to a company press release marking the first financial year of existence.
The release continues that the increase in earnings came about because of a more favorable supply and demand situation as well as higher volumes. As a result, sales increased by 2.7% to EUR 12.08 bn despite declining selling prices.
Core volume growth, which the firm will be measuring in coming years, increased by the same proportion, the release added.
All three regions in which the company operates recorded comparable volume growth last year.
The numbers were flattered somewhat by a leap in profits in the polycarbonates business in the final quarter, according to the release.
In polyurethanes, selling prices declined sharply due primarily to lower raw material prices, segment sales decreased compared with the prior-year period by 3.1% to EUR 6.09bn. However, adjusted EBITDA increased by 5.4% to EUR 624m, Covestro said.
Polycarbonates sales were up compared to the previous year to EUR 3.17bn and the coatings, adhesives, specialties segment saw sales grow by 8.6% compared with 2014 to a record level of EUR 2.09 bn, Covestro said.
Patrick Thomas, ceo, said "All three segments contributed to this performance."
Covestro said it has "positive expectations for the global economy and the development of key customer sectors such as the automotive, construction, electrical and electronics, and furniture industries," in 2016. The firm said it has set itself a volume growth target of "a mid-single-digit percentage increase in core volume growth" in 2016.
XE Currency conversion: 23 February 2016