Leverkusen, Germany – In its first results announcement since the planned Adnoc takeover was agreed, Covestro has reported a slight increase in sales. In the third quarter, they rose by 1.0% to €3.60bn, up 1.0% from the €3.57 reported in the same quarter in 2023. Volumes were up, notably in its EMLA and APAC regions, but reduced selling prices in the light of cheaper raw materials impacted the sales total.
Covestro sales up slightly in challenging market
EBITDA was up by 3.6%, rising from €277m in last year’s quarter to €287m this year. “Overall, global demand is intact but remains at a low level. We continue to face challenges in various industries and regions,” said CFO Christian Baier. “Nonetheless, we were able to slightly increase our EBITDA, indicating that our measures for efficiency and plant reliability are working.
The company has narrowed its guidance for the full year. It now expects EBITDA will fall in the range €1.0bn to €1.25bn, with the previous predicted range being €1.0-1.40bn.
Sales were up by 4.1% in the performance materials business, rising from €1.71bn in the quarter last year to €1.78bn this year. Increased volumes were the primary driver, particularly in the EMLA region, contributing to a 47.1% increase in EBITDA, from €85m to €125m.
In contrast, sales for solutions & specialties fell by 2.0%, from €1.81bn to €1.77bn. The company largely attributed the decline to a demand-related fall in average selling prices that were not fully offset by higher volumes. EBITDA for this part of the business fell by 15.4%, from €246m to €208m.
“The current market environment remains challenging,” said CEO Markus Steilemann. “Our focus is therefore clear: we continue to do our homework, focus on the levers we can control and consistently implement our ‘Sustainable Future’ strategy. In doing so, we not only lay the foundation for future success and sustainable growth, but also make steady progress towards becoming fully circular.”
Meanwhile, Adnoc has now published its formal offer to purchase all outstanding Covestro shares at an offer price of €62. Covestro’s board of management and supervisory board will now review the document, but have said they assume there will be a recommendation that shareholders accept the offer.
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