Covestro trading on track in Q1 2018

Leverkusen, Germany – Sales in the polyurethanes business of Covestro were up 7.1% in the first quarter of 2018.

They reached EUR 1.95 bn, despite a 1% fall in core volumes.

The sales number translated into a 36.1% increase in EBITDA to EUR 637m. This compares with EUR 468m in the 2017 quarter. Higher prices around the world increased EBITDA in the segment. Higher prices offset the effects of unfavourable exchange rates and the fall in core volumes

The company's predominantly polyurethane Coatings, Adhesives, Specialties sector saw sales fall by 7.1% to EUR 592m in the quarter. This compares with EUR 637m in the 2017 quarter. Core volumes in the business unit fell by 1.3% compared to the 2017 quarter.

The fall in sales fed through to a 15% fall in EBITDA which was EUR 136m in the quarter compared with EUR 160 in the first quarter of 2017. The fall in sales was due to currency effects, lower sales volumes and increased raw materials costs.

AT EUR 3.8bn sales across Covestro in the first quarter were up 5.4%. This was due to higher prices, the firm said.

This sales growth fed through to EBITDA for the business which was EUR 1.1bn, itself up 25.7% on the first quarter of 2017.

'We got off to a successful start in the first quarter and are well on track for the whole year,' said Markus Steilemann, COO. 'While maintaining core volumes on a high level, we have significantly improved other key figures.'