Covestro

Key Data – Covestro

 

 

Q3 2015

Q3 2016

 

Change

 

9M 2015

9M 2016

 

Change

 

 

€ million

€ million

 

Reported %

Fx & p adj. %

 

€ million

€ million

 

Reported %

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 “Statements of Cash Flows.”

Sales

 

3,009

3,004

 

–0.2

+1.0

 

9,208

8,829

 

–4.1

–2.6

Change in sales

 

 

 

 

 

 

 

 

 

 

 

 

Volume

 

–0.2%

+6.1%

 

 

 

 

+3.0%

+5.6%

 

 

 

Price

 

–7.5%

–5.1%

 

 

 

 

–6.1%

–8.2%

 

 

 

Currency

 

+6.8%

–1.2%

 

 

 

 

+9.0%

–1.5%

 

 

 

Portfolio

 

0.0%

0.0%

 

 

 

 

0.0%

0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

€ million

€ million

 

Reported %

Fx adj. %

 

€ million

€ million

 

Reported %

Fx adj. %

Sales by region

 

 

 

 

 

 

 

 

 

 

 

 

Europe

 

1,130

1,070

 

–5.3

–5.0

 

3,381

3,285

 

–2.8

–2.7

North America

 

729

700

 

–4.0

–3.6

 

2,213

2,069

 

–6.5

–6.4

Asia / Pacific

 

819

922

 

+12.6

+14.9

 

2,579

2,581

 

+0.1

+2.9

Latin America / Africa / Middle East

 

331

312

 

–5.7

–2.4

 

1,035

894

 

–13.6

–7.5

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA1

 

388

564

 

+45.4

 

 

1,239

1,611

 

+30.0

 

Special items

 

(84)

 

 

 

 

(163)

 

 

 

EBITDA before special items1

 

472

564

 

+19.5

 

 

1,402

1,611

 

+14.9

 

EBITDA margin before special items1

 

15.7%

18.8%

 

 

 

 

15.2%

18.2%

 

 

 

EBIT

 

217

398

 

+83.4

 

 

714

1,101

 

+54.2

 

Special items

 

(87)

 

 

 

 

(188)

 

 

 

EBIT before special items1

 

304

398

 

+30.9

 

 

902

1,101

 

+22.1

 

Gross cash flow2

 

310

447

 

+44.2

 

 

981

1,282

 

+30.7

 

Net cash flow2

 

326

668

 

+104.9

 

 

849

1,146

 

+35.0

 

Third quarter of 2016

Sales

Sales of Covestro edged forward by 1.0% (Fx & portfolio adj.) in the third quarter of 2016 compared with the prior-year period, to €3,004 million. Volumes were up year on year overall, particularly at Polycarbonates and Polyurethanes. Selling prices declined in all business units, mainly due to raw material price development.

Sales by Business Unit

 

 

Q3 2015

Q3 2016

 

Change

 

9M 2015

9M 2016

 

Change

 

 

€ million

€ million

 

Reported %

Fx & p adj. %

 

€ million

€ million

 

Reported %

Fx & p adj. %

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

Polyurethanes

 

1,513

1,502

 

–0.7

+0.4

 

4,702

4,385

 

–6.7

–5.1

Polycarbonates

 

818

848

 

+3.7

+5.5

 

2,410

2,465

 

+2.3

+4.3

Coatings, Adhesives, Specialties

 

520

514

 

–1.2

–0.6

 

1,615

1,558

 

–3.5

–2.5

Other Covestro business

 

158

140

 

–11.4

–10.8

 

481

421

 

–12.5

–12.1

Total

 

3,009

3,004

 

–0.2

+1.0

 

9,208

8,829

 

–4.1

–2.6

Sales by business unit

  • Sales were level year on year at Polyurethanes, at €1,502 million (Fx & portfolio adj. +0.4%). Higher volumes were nearly offset by lower selling prices.
  • Polycarbonates improved sales by 5.5% (Fx & portfolio adj.) to €848 million, with much higher volumes more than offsetting lower selling prices.
  • Sales at Coatings, Adhesives, Specialties were flat year on year at €514 million (Fx & portfolio adj. −0.6%). Lower selling prices were nearly offset by an expansion of volumes.

Earnings

EBITDA before special items of Covestro improved by 19.5% to €564 million in the third quarter of 2016 (Q3 2015: €472 million). This increase resulted mostly from lower raw material prices and higher volumes that more than offset the decline in selling prices. Earnings were diminished by a negative currency effect of around €10 million.

EBIT rose year on year by a substantial 83.4% to €398 million. There were no special items (Q3 2015: minus €87 million).

First nine months of 2016

Sales

Sales of Covestro fell by 2.6% (Fx & portfolio adj.) in the first nine months of 2016 compared with the prior-year period, to €8,829 million. Selling prices declined in all three business units, especially at Polyurethanes. Volumes were above the level of the prior-year period overall, increasing at Polycarbonates and Polyurethanes but unchanged from a year earlier at Coatings, Adhesives, Specialties.

Earnings

EBITDA before special items increased by 14.9% to €1,611 million. EBIT improved by 54.2% to €1,101 million. There were no special items (9M 2015: minus €188 million).