Business Development
Covestro

Key Data – Covestro

 

 

 

 

 

 

 

 

 

 

 

 

 

3rd Quarter 2014

3rd Quarter 2015

Change

 

First Nine Months 2014

First Nine Months 2015

Change

 

 

€ million

€ million

%

Fx & p adj. %

 

€ million

€ million

%

Fx & p adj. %

Fx & p adj. = currency- and portfolio-adjusted; Fx adj. = currency-adjusted

1

For definition see “Calculation of EBIT(DA) Before Special Items.”

2

For definition see “Financial Position of the Bayer Group.”

Sales

 

3,036

3,009

−0.9

−7.7

 

8,703

9,208

+5.8

−3.2

Change in sales

 

 

 

 

 

 

 

 

 

 

Volume

 

+6.1%

−0.2%

 

 

 

+6.5%

+2.9%

 

 

Price

 

−0.8%

−7.5%

 

 

 

−1.9%

−6.1%

 

 

Currency

 

−0.3%

+6.8%

 

 

 

−2.4%

+9.0%

 

 

Portfolio

 

−0.2%

0.0%

 

 

 

−0.4%

0.0%

 

 

Sales

 

 

 

 

 

 

 

 

 

 

Polyurethanes

 

1,652

1,513

−8.4

−14.5

 

4,694

4,702

+0.2

−8.2

Polycarbonates

 

726

818

+12.7

+3.2

 

2,079

2,410

+15.9

+4.1

Coatings, Adhesives, Specialties

 

503

520

+3.4

−3.2

 

1,455

1,615

+11.0

+2.5

Other Covestro business

 

155

158

+1.9

−1.3

 

475

481

+1.3

−2.9

 

 

 

 

 

 

 

 

 

 

 

 

 

€ million

€ million

%

Fx adj. %

 

€ million

€ million

%

Fx adj. %

Sales by region

 

 

 

 

 

 

 

 

 

 

Europe

 

1,122

1,130

+0.7

+1.0

 

3,405

3,381

−0.7

−0.5

North America

 

678

729

+7.5

−9.7

 

1,920

2,213

+15.3

−5.1

Asia / Pacific

 

878

819

−6.7

−18.9

 

2,360

2,579

+9.3

−7.7

Latin America / Africa / Middle East

 

358

331

−7.5

−3.6

 

1,018

1,035

+1.7

+1.9

 

 

 

 

 

 

 

 

 

 

 

EBIT

 

184

217

+17.9

 

 

512

714

+39.5

 

Special items

 

(2)

(87)

 

 

 

(21)

(188)

 

 

EBIT before special items1

 

186

304

+63.4

 

 

533

902

+69.2

 

EBITDA1

 

333

388

+16.5

 

 

953

1,239

+30.0

 

Special items

 

(1)

(84)

 

 

 

(17)

(163)

 

 

EBITDA before special items1

 

334

472

+41.3

 

 

970

1,402

+44.5

 

EBITDA margin before special items1

 

11.0%

15.7%

 

 

 

11.1%

15.2%

 

 

Gross cash flow2

 

261

310

+18.8

 

 

760

981

+29.1

 

Net cash flow2

 

274

326

+19.0

 

 

363

849

+133.9

 

Sales of Covestro (formerly MaterialScience) in the third quarter of 2015 fell to €3,009 million (Fx & portfolio adj.: −7.7%; reported: −0.9%). Selling prices declined in the three business units, primarily at Polyurethanes. This was chiefly attributable to the development of raw material prices. Overall, volumes remained at the level of the prior-year quarter.

Covestro Quarterly Sales

Covestro Quarterly Sales (bar chart)Covestro Quarterly Sales (bar chart)

The Polyurethanes business unit saw sales fall by 14.5% (Fx & portfolio adj.) to €1,513 million. This decline resulted mainly from much lower selling prices for the three product groups toluene diisocyanate (TDI), diphenylmethane diisocyanate (MDI) and polyether polyols (PET), due primarily to declining raw material prices overall.

The Polycarbonates business unit raised sales by 3.2% (Fx & portfolio adj.) to €818 million. This growth was due above all to positive volume development, although selling prices were down slightly.

Sales in the Coatings, Adhesives, Specialties business unit declined by 3.2% (Fx & portfolio adj.) to €520 million. Volumes and selling prices were down slightly overall against the prior year.

Covestro
Quarterly EBIT

Covestro Quarterly EBIT (bar chart)Covestro Quarterly EBIT (bar chart)
Covestro
Quarterly EBITDA Before Special Items

Covestro Quarterly EBITDA Before Special Items (bar chart)Covestro Quarterly EBITDA Before Special Items (bar chart)

EBIT of Covestro in the third quarter of 2015 was above the prior-year level at €217 million (+17.9%). This figure reflected special charges of €87 million (Q3 2014: €2 million) for restructuring measures, chiefly for the separation and stock market listing of Covestro and for the consolidation of production sites. EBIT before special items climbed by a substantial 63.4% to €304 million. EBITDA before special items also improved significantly by 41.3% to €472 million (Q3 2014: €334 million). Considerably lower raw material prices more than offset the decline in selling prices. This was due to a more favorable supply-and-demand situation in some markets. Earnings were additionally buoyed by positive currency effects of around €70 million.

Sales of Covestro in the first nine months of 2015 moved back by 3.2% (Fx & portfolio adj.; reported: +5.8%) to €9,208 million. Higher volumes in all business units were not sufficient to offset lower selling prices, particularly at Polyurethanes but also at Polycarbonates.

EBIT advanced by a significant 39.5% to €714 million. EBITDA before special items climbed by 44.5% to €1,402 million. Considerably lower raw material prices and higher volumes more than offset the decline in selling prices. Positive currency effects of some €200 million also contributed to this increase in earnings.