• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Research
    • Markets & Technologies
    • Raw Materials
    • Top Companies
    • Directories
    • Jobs
    • Events
    • Microsites
    • More
  • Magazine
  • News
  • Research
  • Markets & Technologies
  • Raw Materials
  • Top Companies
  • Directories
  • Jobs
  • Events
  • Microsites
  • Current / Back Issues
    Features
    Business Corner
    Editorial
    Digital Edition
    eNewsletter Archive
    Our Team
    Editorial Guidelines
    Subscribe Now
    Advertise Now
    World Reports
    eBook
    Top Features
    Additives Update

    Pigment Supplier Directory

    Interior Architectural Coatings

    Biocides Update

    Powder Coatings Market
    Breaking News
    Online Exclusives
    Distributor News
    Financial News
    Paint & Coatings Manufacturer News
    People In the News
    Price Increases
    Product News
    Video Bites
    Raw Materials & Equipment
    Suppliers News
    Live From Shows
    Top News
    Minwax Announces Vintage Blue as 2021 Color of the Year

    Palmer Holland Expands Roles, Positions Of Business Teams

    In Memoriam: CIN’s Honorary Chairman António Serrenho

    OQ Chemicals Announces Sales Control for US Oxo Intermediates

    APV Engineered Coatings Reflects on 2020
    Top Companies report
    Market Research
    White Papers / Tech Papers
    Technical Papers
    Product Spec Sheets
    World Reports
    Adhesives and Sealants
    Aerospace Coatings
    Architectural Coatings
    Automotive Coatings
    Automotive Refinish
    Business Operation
    Color Trends & Forecast
    Construction Chemicals
    Corrosion Control
    Industrial Coatings
    Laboratory Equipment
    Marine Coatings
    Market Trends & Forecast
    Powder Coatings
    Production Equipment
    Radcure Coatings
    Special Purpose Coatings
    Wood Coatings
    "Green" Coatings

    Minwax Announces Vintage Blue as 2021 Color of the Year

    LINE-X Launches Dealer Program with International Truck

    PPG Donates Coatings, Sealants to Help Restore Douglas C-54 Skymaster Aircraft

    Mankiewicz Announces Leadership Change in Aviation Division

    AMETEK Brookfield Opens Media Room at US HQ
    Additives
    Binders
    Pigments
    Solvents

    OQ Chemicals Announces Sales Control for US Oxo Intermediates

    Active Minerals Announces Shipping Container Surcharge

    Huntsman Finalizes Acquisition of Gabriel Performance Products

    LANXESS Acquires Biocides Specialist INTACE

    dar-tech, inc. Becomes U.S. Midwestern Distributor for ZS Interpolymer
    Buyers Guide
    Company Capabilities
    Distributor Guide
    Add New Company
    International Buyers Guide Companies
    Active Minerals

    Siltech Corporation

    Pilot Chemical Company

    ROSS Mixers

    Shepherd Color Company, The
    Industry Events
    Webinars
    Live From Show Event
    Top Events
    The Waterborne Symposium (2021)

    Cleveland Coatings Society Zoom Meeting

    Surface Finishing Mexico 2021

    Cleveland Coatings Society Zoom Meeting

    Cleveland Coatings Society Zoom Meeting
    Companies
    White Papers/Tech Papers
    Product Spec Sheets
    Equipment
    Literature/Brochures
    Videos
    International Buyers Guide Companies
    Eagle Specialty Products

    Pilot Chemical Company

    Active Minerals

    ROSS Mixers

    Shepherd Color Company, The
    • Magazine
      • Current / Back Issues
      • Features
      • Editorial
      • Business Corner
      • Digital Edition
      • eNewsletter Archive
      • Editorial Guidelines
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Directories
      • Buyers Guide
      • Distributor Guide
      • Corporate Capabilities
      • Trade Associations
      • Add Your Company
    • Markets & Technologies
      • Adhesives and Sealants
      • Aerospace Coatings
      • Architectural Coatings
      • Automotive Coatings
      • Automotive Refinish
      • Business Operation
      • Color Trends & Forecast
      • Construction Chemicals
      • Corrosion Control
      • Industrial Coatings
      • Laboratory Equipment
      • Marine Coatings
      • Market Trends & Forecast
      • Powder Coatings
      • Production Equipment
      • Radcure Coatings
      • Special Purpose Coatings
      • Wood Coatings
      • "Green" Coatings
    • Raw Materials
      • Additives
      • Binders
      • Pigments
      • Solvents
    • World Reports
      • Africa Report
      • China Report
      • India/Asia Pacific Report
      • Europe Report
      • Latin America Report
      • Market Research
      • Russian Report
    • Top Companies
    • Online Exclusives
    • Slideshows
    • Experts Opinions
    • Blog
    • eBook
    • Infographics
    • Videos
    • Podcasts
    • Whitepapers
    • Jobs
    • Microsites
      • Companies
      • White Papers/Tech Papers
      • Product Spec Sheets
      • Equipment
      • Literature/Brochures
      • Videos
    • Events
      • Industry Events
      • Live From Show Event
      • Webinars
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    Breaking News

    Covestro Annouces 3Q Results

    ...

    Covestro Annouces 3Q Results
    Related CONTENT
    • APV Engineered Coatings Reflects on 2020
    • PPG Reports Q4, Full-year 2020 Financial Results
    • Axalta Launches 2 Imron Elite products
    • Ezio Braggio Joins ChemQuest Europe
    • New Strategy Sets Hempel on Path to Leadership Positions
    10.25.18
    Covestro reported strong third quarter results. Group sales grew by 4.8 percent to €3.7 billion over the same quarter in 2017 thanks to higher selling prices and volumes sold.
     
    Core volumes were up marginally by 0.2 percent, remaining at last year’s level despite limited product availability. At €859 million, the Group’s EBITDA also matched the prior year period. Declining margins in the Polyurethanes segment were offset by higher margins in the Polycarbonates segment. Net income rose slightly by one percent to €496 million. Earnings per share advanced by 6.6 percent to €2.59, supported by the ongoing share buyback. Free operating cash flow was down 12.2 percent to €578 million due to increased investments.
    “We are continuing on a successful path. The investments we have decided on point us in our future direction and lay the foundation for organic growth going forward,” Covestro CEO Dr. Markus Steilemann said. “Our efficiency program will also improve cost structures over the medium term.”

    With investments totaling around €1.5 billion, Covestro recently announced the expansion of its MDI capacity in Baytown, Texas. There, a new world-scale plant is expected to produce 500 kilotons of MDI per year by 2024. At the same time, investment projects are underway in Brunsbüttel, Germany, Tarragona Spain, Antwerp, Belgium, and Caojing, China to boost Covestro’s capacity to produce MDI and its precursors in order to benefit from global market growth. The MDI market is projected to grow by around five percent per year in the long term, exceeding global GDP by some two percentage points.

    Covestro is also committed to developing innovative products driven mainly by sustainability: Since fall 2018, the company has marketed the first representative in a new series of thermoplastic polyurethanes manufactured with the help of CO2-based raw materials. Compared with conventional materials, these new polyurethanes have a smaller ecological footprint and therefore contribute to meeting the demand for more sustainable solutions.

    Full year guidance confirmed
    “The third quarter met our expectations. We are seeing increasingly challenging economic conditions and also experienced limited product availability in Europe and Asia in the past quarter,” Covestro CFO Dr. Thomas Toepfer said. “Nonetheless, we were able to keep volumes stable. In this context, we today confirm our guidance for 2018.”

    Covestro aims for a low- to a mid-single-digit percentage increase of core volumes for full-year 2018. Free operating cash flow is expected to be above €2 billion. The company expects ROCE around the previous year’s level while continuing to project EBITDA above previous year’s level. 

    In the past quarter, Covestro continued its share buyback program, launching the third tranche in August. Since the beginning of the program, shares totaling some €1.2 billion, or nearly 8 percent of capital stock, have been repurchased. Overall, Covestro aims to buy back own shares totaling up to €1.5 billion, or up to 10 percent of its capital stock by mid-2019.

    Cost savings targeted at €350 million per year
    Simultaneously, Covestro is making good progress with another strategic lever: The company stepped up cross-division collaboration and increased use of digital solutions are anticipated to boost effectiveness and efficiency markedly. By 2021 at the latest, the cost savings are estimated at around €350 million per year with the goal of limiting the increase in operational costs. The measures identified are intended mainly to permanently reduce non-labor costs, although roughly 900 full-time positions will be reduced worldwide, e.g., in administrative areas. The job reductions will be carried out by way of socially acceptable solutions that have already been agreed with the Works Council in Germany.

    Strong growth in Polycarbonates and Coatings, Adhesives, Specialties
    In the Polyurethanes segment, sales decreased marginally in the third quarter of 2018, by 1.2 percent to €1,849 million. A decline in sales in the EMLA and APAC regions was balanced out by an increase in the NAFTA region. Price changes, currency effects, and unplanned plant downtime had negative effects. Core volumes in the Polyurethanes segment dropped by two percent. EBITDA in the segment was down 21.5 percent to €432 million. This was attributable mainly to rising purchase prices for raw materials.

    The Polycarbonates segment continued to see strong growth in the third quarter, registering an 11.3 percent increase in sales to €1,038 million. A rise in core volumes (up 2.6 percent) and higher selling prices positively impacted sales. Sales in the EMLA and APAC regions grew substantially, balancing out a decline in the NAFTA region. The Polycarbonates segment’s EBITDA benefited from higher margins and prices, rising 49.3 percent to €315 million. This result also includes non-recurring income of €36 million from the sale of the U.S. sheet business. 

    In the Coatings, Adhesives, Specialties segment, sales increased 8.8 percent to €606 million. All regions contributed to the growth in sales. In the third quarter, the segment’s core volumes also increased sharply, expanding by 7.2 percent. EBITDA was €126 million, around the previous year’s level (+0.8 percent).

    Successful business performance in the first nine months of 2018
    In the first nine months, Covestro has already built a solid overall foundation for the year as a whole. Cumulatively, core volumes were up 1.5 percent over the previous year’s figures. Sales climbed 6.9 percent to €11.3 billion, and EBITDA jumped 13.7 percent to €2.9 billion. In addition, the company increased free operating cash flow by 9.9 percent to €1.3 billion.
    Related Searches
    • adhesives
    • china
    • sustainability
    • coatings
    Suggested For You
    APV Engineered Coatings Reflects on 2020 APV Engineered Coatings Reflects on 2020
    PPG Reports Q4, Full-year 2020 Financial Results PPG Reports Q4, Full-year 2020 Financial Results
    Axalta Launches 2 Imron Elite products Axalta Launches 2 Imron Elite products
    Ezio Braggio Joins ChemQuest Europe Ezio Braggio Joins ChemQuest Europe
    New Strategy Sets Hempel on Path to Leadership Positions New Strategy Sets Hempel on Path to Leadership Positions
    Interior Architectural Coatings Interior Architectural Coatings
    Q&A: PPG Q&A: PPG's Amy Mercante
    BASF Supports Local Students with Process Technology Internships BASF Supports Local Students with Process Technology Internships
    Teknos: Circular Economy Driving Coating Product Development Teknos: Circular Economy Driving Coating Product Development
    Arkema, Cool Roof Creating More Durable Reflective Roofs Arkema, Cool Roof Creating More Durable Reflective Roofs
    IGL Coatings Launches Proprietary Self-Cleaning Coating IGL Coatings Launches Proprietary Self-Cleaning Coating
    Hempel Launches Re-formulated Antifouling Technology Hempel Launches Re-formulated Antifouling Technology
    Grace Showcases its Latest Eco-Friendly and High-Performance Solutions at CHINACOAT 2020 Grace Showcases its Latest Eco-Friendly and High-Performance Solutions at CHINACOAT 2020
    AOC Announces Price Increase for Americas AOC Announces Price Increase for Americas
    BCF: Coatings Industry Business Confidence Returns to Pre-Covid Levels BCF: Coatings Industry Business Confidence Returns to Pre-Covid Levels

    Related Breaking News

    • Breaking News | Color Trends & Forecast | Paint & Coatings Manufacturer News | Wood Coatings
      Minwax Announces Vintage Blue as 2021 Color of the Year

      Minwax Announces Vintage Blue as 2021 Color of the Year

      Company's first-ever Color of the Year.
      Anthony Locicero, Associate editor 01.26.21

    • Breaking News | People in the News
      Palmer Holland Expands Roles, Positions Of Business Teams

      Palmer Holland Expands Roles, Positions Of Business Teams

      Palmer Holland is a North American specialty chemical and fine ingredient distributor.
      Anthony Locicero, Associate editor 01.26.21

    • Breaking News | People in the News
      In Memoriam: CIN’s Honorary Chairman António Serrenho

      In Memoriam: CIN’s Honorary Chairman António Serrenho

      Serrenho started his career at CIN in 1950.
      CIN 01.26.21


    • Additives | Breaking News | Industry News
      OQ Chemicals Announces Sales Control for US Oxo Intermediates

      OQ Chemicals Announces Sales Control for US Oxo Intermediates

      Due to recent increased demand and current shortages of supply.
      Anthony Locicero, Associate editor 01.26.21

    • Breaking News
      APV Engineered Coatings Reflects on 2020

      APV Engineered Coatings Reflects on 2020

      Company remained open and operating during the COVID-19 pandemic.
      Anthony Locicero, Associate editor 01.26.21

    • Automotive Coatings | Breaking News | Industrial Coatings | Paint & Coatings Manufacturer News
      LINE-X Launches Dealer Program with International Truck

      LINE-X Launches Dealer Program with International Truck

      LINE-X’s protective coating is now standard on the International HX Series and will be available on the MV and HV Series later this year.
      Kerry Pianoforte, Editor 01.25.21


    • Breaking News | Paint & Coatings Manufacturer News | People in the News
      BCF CEO to Chair Royal Society of Chemistry Surface Coatings Interest Group

      BCF CEO to Chair Royal Society of Chemistry Surface Coatings Interest Group

      The group now has over 300 members.
      Anthony Locicero, Associate editor 01.25.21

    • Aerospace Coatings | Breaking News | Paint & Coatings Manufacturer News
      PPG Donates Coatings, Sealants to Help Restore Douglas C-54 Skymaster Aircraft

      PPG Donates Coatings, Sealants to Help Restore Douglas C-54 Skymaster Aircraft

      Aircraft used by U.S. Army Air Forces during World War II, Korean War, Vietnam War.
      Anthony Locicero, Associate editor 01.25.21

    • Aerospace Coatings | Breaking News | People in the News
      Mankiewicz Announces Leadership Change in Aviation Division

      Mankiewicz Announces Leadership Change in Aviation Division

      René Lang succeeds Andreas Ossenkopf.
      01.25.21


    • Breaking News | Paint & Coatings Manufacturer News
      AkzoNobel Attains Top Employer Status

      AkzoNobel Attains Top Employer Status

      Engaging programs secure Top Employer status for AkzoNobel.
      Kerry Pianoforte, Editor 01.25.21

    • Breaking News | Financial News
      PPG Reports Q4, Full-year 2020 Financial Results

      PPG Reports Q4, Full-year 2020 Financial Results

      Fourth quarter net sales of approximately $3.8 billion, more than 2% higher than the prior year.
      01.22.21

    • Breaking News
      BASF Begins Implementing Ralignment of Global Business Services Unit

      BASF Begins Implementing Ralignment of Global Business Services Unit

      Transfer of responsibilities and tasks to service centers starts in March 2021.
      01.22.21


    • Breaking News | People in the News
      Nouryon Appoints Curtis Espeland to Board of Directors

      Nouryon Appoints Curtis Espeland to Board of Directors

      Former Eastman CFO Espeland will also chair the Company’s Audit Committee.
      01.22.21

    • Breaking News | Laboratory Equipment | Production Equipment
      AMETEK Brookfield Opens Media Room at US HQ

      AMETEK Brookfield Opens Media Room at US HQ

      Will be used for new video content and live productions, including online courses, how-to videos, webinars, and more.
      01.22.21

    • Breaking News | Financial News
      PPG Directors Announce Quarterly Dividend of 54 Cents Per Share

      PPG Directors Announce Quarterly Dividend of 54 Cents Per Share

      Payable March 12 to shareholders of record Feb. 19.
      01.21.21

    Trending
    • BASF Begins Implementing Ralignment Of Global Business Services Unit
    • AkzoNobel Attains Top Employer Status
    • New Strategy Sets Hempel On Path To Leadership Positions
    • PPG Donates Coatings, Sealants To Help Restore Douglas C-54 Skymaster Aircraft
    • Benjamin Moore Bringing Products To Wider Audience With UK Acquisition
    Breaking News
    • Minwax Announces Vintage Blue as 2021 Color of the Year
    • Palmer Holland Expands Roles, Positions Of Business Teams
    • In Memoriam: CIN’s Honorary Chairman António Serrenho
    • OQ Chemicals Announces Sales Control for US Oxo Intermediates
    • APV Engineered Coatings Reflects on 2020
    View Breaking News >
    CURRENT ISSUE

    January 2021

    • Additives Update
    • Pigment Supplier Directory
    • Interior Architectural Coatings
    • View More >

    Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
    You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

    • About Us
    • Privacy Policy
    • Terms And Conditions
    • Contact Us

    follow us

    Subscribe
    Nutraceuticals World

    Latest Breaking News From Nutraceuticals World

    MIND and Mediterranean Diets Linked to Later Onset of Parkinson’s Disease
    Kerry Launches Web-Based Tool for Plant-Based Formulation Challenges
    Wiley’s Finest Earns Accolades for Taste of Omega-3 Products
    Coatings World

    Latest Breaking News From Coatings World

    Scott McLaughlin to Race in PPG Colors During Rookie INDYCAR Season
    Vink Chemicals Offers parmetol PSG
    Minwax Announces Vintage Blue as 2021 Color of the Year
    Medical Product Outsourcing

    Latest Breaking News From Medical Product Outsourcing

    Butterfly Network Appoints New Leader
    BD Names Chairman of Board
    Interplex Acquires OCP Group
    Contract Pharma

    Latest Breaking News From Contract Pharma

    Stevanato Group Launches After-sales Service Offering
    X-Chem Acquires IntelliSyn and AviSyn
    Aphena’s $21M Cookeville Expansion Nears Completion
    Beauty Packaging

    Latest Breaking News From Beauty Packaging

    The Estée Lauder Companies Announces Game-Changing Sustainability Goals for Travel Retail
    Aura Introduces Customizable Hair Care
    Corpack Creates Custom Packaging for Marlies Möller Hair Care Line
    Happi

    Latest Breaking News From Happi

    Nice-Pak Receives EPA Approval for Disinfectant Wipes
    Symrise Shares 2020 Sales Figures
    Harry’s Launches ‘Headquarters’
    Ink World

    Latest Breaking News From Ink World

    Epson Partner Creates Label Applicators for Pharmaceutical Products
    Smurfit Kappa Sets New Sustainability Targets with Better Planet 2050
    Paragon Expands Direct Mail Capabilities with Ricoh Pro VC70000
    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    Great Lakes Label debuts new website
    Epson partner creates label applicators for pharmaceutical products
    ACTEGA removes chemicals from laminating adhesives
    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    American Made Production Equipment for Mask Manufacturers
    Kimberly-Clark Releases Q4, Full Year Results
    Freudenberg to Establish Apparel Interlining Competence Centers
    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    Spinal Elements' Lucent XP-Curved Expandable TLIF Gains FDA Nod
    FDA OKs OrthoSpin's 2nd Gen Robotic, Digital External Fixation System
    Nextremity Solutions Enters Supply Agreement with Fort Wayne Metals
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    North American Semiconductor Equipment Industry Posts December 2020 Billings
    First Solar Signs Definitive Agreement to Sell US Development Platform to Leeward
    PRINTING United Alliance Announces TAGA Presents Virtual Event

    Copyright © 2021 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

    AD BLOCKER DETECTED

    Our website is made possible by displaying online advertisements to our visitors.
    Please consider supporting us by disabling your ad blocker.


    FREE SUBSCRIPTION Already a subscriber? Login