• 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
    Purdue’s Xiulin Ruan Develops World’s Whitest and Coolest Paint

    Aerospace Coatings

    Biocides Directory

    Lab & Testing Equipment Directory

    Europe’s Top Paintmakers Pull Themselves Up Further
    Breaking News
    Online Exclusives
    Distributor News
    Financial News
    Paint & Coatings Manufacturer News
    People In the News
    Price Increases
    Product News
    Raw Materials & Equipment
    Video Bites
    Suppliers News
    Live From Shows
    Top News
    Sandrine Garnier Joins ChemQuest as a Director

    Greenbuild Announces 2023 Keynote Speaker

    PPG’s New Paint for a New Start Initiative to Beautify Schools Worldwide with Colorful Makeovers

    Powder Technology, Inc. Announces New Electrical Coating

    Michelman Chosen as Inaugural Recipient of Innovation Research Interchange (IRI) Excellence Award
    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

    PPG’s New Paint for a New Start Initiative to Beautify Schools Worldwide with Colorful Makeovers

    Powder Technology, Inc. Announces New Electrical Coating

    Dunn-Edwards Announces 2024 Color + Design Trends to Watch

    PPG Launches Low-temperature Cure Electrocoats for Automotive Manufacturers

    Kapci Coatings Takes to the Ferrari Challenge Tracks
    Additives
    Binders
    Pigments
    Solvents

    Michelman Chosen as Inaugural Recipient of Innovation Research Interchange (IRI) Excellence Award

    American Chemistry Council Recognizes Covestro for Sustainability Leadership

    Evonik Introduces TEGO Rad 2550 Slip and Defoamer Additive

    Omya Extends Lightweight Fillers Portfolio with the Acquisition of Bublon

    OQ Chemicals Launches Biobased Oxbalance TCD Alcohol DM
    Company Capabilities
    Buyers Guide
    Distributor Guide
    Add New Company
    International Buyers Guide Companies
    W. R. Grace & Co.

    Active Minerals

    Clariant Additives

    Siltech Corporation

    Shepherd Color Company, The
    Industry Events
    Webinars
    Live From Show Event
    Top Events
    Middle East Coatings Show

    2023 CoatingsTech Conference

    Greenbuild International Conference + Expo

    The Gulf Coatings Show

    Western Coatings Symposium 2023
    Companies
    White Papers/Tech Papers
    Product Spec Sheets
    Equipment
    Literature/Brochures
    Videos
    International Buyers Guide Companies
    W. R. Grace & Co.

    Active Minerals

    Clariant Additives

    Siltech Corporation

    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
    • Glossary
    • 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 'Confirms Guidance' for 2019 After 1st 6 Months

    ...

    Covestro
    07.24.19
    Based on the results of the first half of 2019, Covestro has confirmed its guidance for the current fiscal year. As expected, ongoing intense competitive pressure and uncertainties in major sales markets persisted into the second quarter. Whereas core volumes rose by 1.1 percent, group sales fell to €3.2 billion (-16.9 percent) due to lower selling prices. At €459 million, EBITDA stabilized at the level of the first quarter of 2019 (€442 million), but remained well under the outstanding result achieved in the prior-year quarter (-53.4 percent).

    The decline in earnings resulted mainly from lower margins in the Polyurethanes and Polycarbonates segments. Net income declined to €189 million, while free operating cash flow amounted to minus €55 million on account of lower cash flows from operating activities and higher investments. 

    “The economic situation is still challenging, since global economic and political uncertainties remain,” CEO Dr. Markus Steilemann said. “Nonetheless, we reached our earnings targets and were able to increase our core volumes again in the second quarter. This underscores the trend towards more sustainable solutions, which we offer to many industries.” 

    The results for the first six months were well under the previous year's level, but this was because 2018 was marked by exceptionally high margins in some product groups. 

    “Our half-year results met our expectations in the current economic environment. Thus, we confirm our guidance for the fiscal year,” CFO Dr. Thomas Toepfer said. “At the same time, we will closely follow further developments in our major sales markets. The automotive industry developed much weaker than expected, on the other hand the construction sector as well as the wood and furniture industry evolved better.”

    For fiscal 2019, Covestro continues to project core volume growth to be in the low- to mid-single-digit percentage range. FOCF is expected to be between €300 million and €700 million, with ROCE between eight percent and 13 percent. EBITDA for the fiscal year is forecasted to be between €1.5 billion and €2 billion, while in the third quarter, the EBITDA is expected to be around €410 million. 

    Progress on portfolio optimization and investments 

    In the second quarter, Covestro made further progress on improving the portfolio. The European systems houses business is being sold to H.I.G. Capital for a price in the high double-digit millions of Euros. 

    Simultaneously, the Group continues to focus on value-creating investments: In May, Covestro laid the foundation for expanding production of polycarbonate films in Dormagen, Germany. This investment is part of a program totaling €100 million with which Covestro aims to reinforce the high-margin specialty films business. Provided the necessary official permits are obtained, construction of a dedicated chlorine supply facility for the existing MDI production in Tarragona, Spain, will begin at the end of the year. The first internal milestone was met in Baytown, Texas, where a large-scale plant for the rigid foam precursor MDI is planned. Now, the 100-person project team will begin with the detailed technical planning.

    Core volume growth in Polyurethanes and Polycarbonates

    In the Polyurethanes segment, core volumes grew by 0.7 percent. Sales declined 24.3 percent to €1,489 million, driven by lower selling prices as a result of increased competition. The downturn in selling prices was also evident in EBITDA, which decreased to €172 million (-70.5 percent).

    Core volumes in Polycarbonates rose by 4.4 percent over the prior-year quarter. Whereas the electrical and electronics industry and the construction sector contributed to this growth, volumes in the automotive industry declined. Sales were down 15 percent to €898 million in the second quarter of 2019. EBITDA in the Polycarbonates segment was 46 percent lower, amounting to €154 million, mostly due to the drop in selling prices.

    The Coatings, Adhesives, Specialties segment saw a decline in core volumes of 4.7 percent. As a result, sales were down 1.3 percent to €621 million. Exchange rate movements and the gradual purchase of the shares of Japan-based DIC Covestro Polymer Ltd. had a positive effect, however. The increase in the stake held in the Japanese joint venture also led to a positive non-recurring effect on EBITDA, which grew 7.9 percent to €150 million in the second quarter of 2019.

    Intensified competition a hallmark of H1 2019

    On the whole, the first six months of 2019 saw growing competition, as expected. Volumes sold remained mostly stable (-0.4 percent), while Group sales dropped 16.4 percent to €6,386 million due to lower selling prices. In the Polyurethanes and Polycarbonates segments in particular, selling prices were well below those of the prior-year period. As a result, EBITDA was down 56 percent to €901 million. Net income stood at €368 million (-70.5 percent). Free operating cash flow decreased to minus €100 million.


     
    Related Searches
    • covestro
    • environment
    • led
    • adhesives
    Suggested For You
    AkzoNobel Posts Q2 Results AkzoNobel Posts Q2 Results
    PPG Reports 2Q 2019 Financial Results PPG Reports 2Q 2019 Financial Results
    Axalta Schedules 2Q 2019 Results Conference Call Axalta Schedules 2Q 2019 Results Conference Call
    BASF Group: EBIT Before Special Items in Q2 2019 Considerably Below Expectations BASF Group: EBIT Before Special Items in Q2 2019 Considerably Below Expectations
    NACE International, SSPC Progress Discussions of Potential Partnership NACE International, SSPC Progress Discussions of Potential Partnership
    AkzoNobel Sells Former Paint Factory in UK AkzoNobel Sells Former Paint Factory in UK
    PPG Announcing 2Q 2019 Results July 18 PPG Announcing 2Q 2019 Results July 18
    Covestro Opens New Customer Support Laboratory in Mexico for Coatings, Adhesives, Specialties Covestro Opens New Customer Support Laboratory in Mexico for Coatings, Adhesives, Specialties
    Christopher Jahn Named American Chemistry Council President, CEO Christopher Jahn Named American Chemistry Council President, CEO
    Christopher Jahn Named American Chemistry Council President, CEO Christopher Jahn Named American Chemistry Council President, CEO
    PPG Reports 1Q 2019 Financial Results PPG Reports 1Q 2019 Financial Results
    Covestro Employees Receive Nat Covestro Employees Receive Nat'l ‘Women in Manufacturing’ Leadership Award
    Covestro Introduces New Supplier Diversity Program in North America Covestro Introduces New Supplier Diversity Program in North America
    Pittsburgh Penguins, Covestro, Carnegie Mellon Launch Year 2 of ‘Rethink the Rink Pittsburgh Penguins, Covestro, Carnegie Mellon Launch Year 2 of ‘Rethink the Rink'
    Terra Firma Announces Geographical Expansion Terra Firma Announces Geographical Expansion

    Related Breaking News

    • Breaking News | Financial News
      AkzoNobel Posts Q2 Results

      AkzoNobel Posts Q2 Results

      ...
      07.24.19

    • Breaking News | Financial News
      PPG Reports 2Q 2019 Financial Results

      PPG Reports 2Q 2019 Financial Results

      Net sales of $4 billion is nearly 3 percent lower versus prior year.
      07.18.19

    • Breaking News | Financial News
      Axalta Schedules 2Q 2019 Results Conference Call

      Axalta Schedules 2Q 2019 Results Conference Call

      ...
      07.11.19


    • Breaking News | Financial News
      BASF Group: EBIT Before Special Items in Q2 2019 Considerably Below Expectations

      BASF Group: EBIT Before Special Items in Q2 2019 Considerably Below Expectations

      Outlook for full year 2019 lowered.
      07.08.19

    • Breaking News
      NACE International, SSPC Progress Discussions of Potential Partnership

      NACE International, SSPC Progress Discussions of Potential Partnership

      ...
      07.05.19

    Loading, Please Wait..
    Trending
    • Sherwin-Williams Leads Global Paints Brands In Value: Brand Finance
    • PPG Opens $30-Million Battery Pack Application Center In China
    • Metropolitan New York Coatings Association Hosts Annual Meeting
    • PPG Launches Low-temperature Cure Electrocoats For Automotive Manufacturers
    • Beckers Conducts First LCA Of UV/EB Coil Coatings
    Breaking News
    • Sandrine Garnier Joins ChemQuest as a Director
    • Greenbuild Announces 2023 Keynote Speaker
    • PPG’s New Paint for a New Start Initiative to Beautify Schools Worldwide with Colorful Makeovers
    • Powder Technology, Inc. Announces New Electrical Coating
    • Michelman Chosen as Inaugural Recipient of Innovation Research Interchange (IRI) Excellence Award
    View Breaking News >
    CURRENT ISSUE

    June 2023

      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

    Blue Diamond, Brightseed Partner To Discover New Almond Bioactives
    GOED Publishes Report on EPA and DHA’s Impact on Brain Health
    Alkemist Labs Creates Validated Method for Plant and Fungi-Based Psychedelics
    Coatings World

    Latest Breaking News From Coatings World

    Sandrine Garnier Joins ChemQuest as a Director
    Greenbuild Announces 2023 Keynote Speaker
    PPG’s New Paint for a New Start Initiative to Beautify Schools Worldwide with Colorful Makeovers
    Medical Product Outsourcing

    Latest Breaking News From Medical Product Outsourcing

    Teleflex’s Wattson temporary pacing guidewire FDA cleared
    PDC Partners with David Schnur Associates to Provide Manufacturing Solutions
    Olympus Releases Next-Gen ESG-410 Electrosurgical Generator
    Contract Pharma

    Latest Breaking News From Contract Pharma

    Lotus Clinical Research, Trialogics Partner for Clinical Trial Software Services
    Qosina, Carolina Components Partner to Market Bioprocess Components
    Astellas, KateTx Enter Exclusive License Agreement to Develop KT430
    Beauty Packaging

    Latest Breaking News From Beauty Packaging

    TerraCycle and Wrinkles Schminkles Announces Recycling Program
    Boots CFO Michael Snape Resigns
    Beiersdorf Shares Progress of Its Sustainability Agenda
    Happi

    Latest Breaking News From Happi

    What Chemicals Are Flagged as Washington State Begins Cycle 2 of Safer Products Regulatory Effort
    Hair Growth Composition Patented by J&J
    Superzero's New Social Media Campaign with Song Candy Media Brings Humor to Hair Care
    Ink World

    Latest Breaking News From Ink World

    SICPA Inaugurates Its unlimitrust Campus
    Siegwerk’s Center of Excellence in France Receives Facelift
    Epson announces MakeTheSwitch Campaign
    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    Gallus to celebrate 100 years, opening new Gallus Experience Center
    Mark Andy holds successful Low Migration Workshop
    Ryback & Ryback Consulting launches Machinery division
    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    Terra Baby Diapers, Wipes Launch in U.S. and Canada
    The Honest Company to Exit Europe, Asia
    TechnoPlants to Exhibit at ITMA
    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    Osso VR Launches Virtual Reality Training Program
    Catalyst OrthoScience Names Mark Quick as CFO
    European Regulators Approve Amber Implants' VCFix Spinal System Study
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    Sensormatic Unveils Sensormatic Synergy Media Display
    ams OSRAM Receives the German Innovation Award
    ASSA ABLOY Receives Clearance from Mexico for HHI Acquisition

    Copyright © 2023 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