Covestro

Key Data – Covestro

 

 

Q2 2015

Q2 2016

 

Change

 

H1 2015

H1 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

 

3,185

2,975

 

–6.6

–3.9

 

6,199

5,825

 

–6.0

–4.3

Change in sales

 

 

 

 

 

 

 

 

 

 

 

 

Volume

 

+7.0%

+5.0%

 

 

 

 

+4.7%

+5.4%

 

 

 

Price

 

–6.4%

–8.9%

 

 

 

 

–5.4%

–9.7%

 

 

 

Currency

 

+10.6%

–2.7%

 

 

 

 

+10.1%

–1.7%

 

 

 

Portfolio

 

0.0%

0.0%

 

 

 

 

0.0%

0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

€ million

€ million

 

Reported %

Fx adj. %

 

€ million

€ million

 

Reported %

Fx adj. %

Sales by region

 

 

 

 

 

 

 

 

 

 

 

 

Europe

 

1,158

1,126

 

–2.8

–2.8

 

2,251

2,215

 

–1.6

–1.6

North America

 

766

686

 

–10.4

–8.4

 

1,484

1,369

 

–7.7

–7.7

Asia / Pacific

 

904

866

 

–4.2

+0.6

 

1,760

1,659

 

–5.7

–2.7

Latin America / Africa / Middle East

 

357

297

 

–16.8

–9.8

 

704

582

 

–17.3

–9.9

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA1

 

448

543

 

+21.2

 

 

851

1,047

 

+23.0

 

Special items

 

(58)

 

 

 

 

(79)

 

 

 

EBITDA before special items1

 

506

543

 

+7.3

 

 

930

1,047

 

+12.6

 

EBITDA margin before special items1

 

15.9%

18.3%

 

 

 

 

15.0%

18.0%

 

 

 

EBIT

 

278

367

 

+32.0

 

 

497

703

 

+41.4

 

Special items

 

(59)

 

 

 

 

(101)

 

 

 

EBIT before special items1

 

337

367

 

+8.9

 

 

598

703

 

+17.6

 

Gross cash flow2

 

359

428

 

+19.2

 

 

671

835

 

+24.4

 

Net cash flow2

 

360

309

 

–14.2

 

 

523

478

 

–8.6

 

Second quarter of 2016

Sales

Sales of Covestro fell by 3.9% (Fx & portfolio adj.) in the second quarter of 2016 compared with the prior-year period, to €2,975 million. Selling prices were down significantly, mainly due to raw material price development and primarily at Polyurethanes. Volumes were above the level of the prior-year quarter overall.

Sales by Business Unit

 

 

Q2 2015

Q2 2016

 

Change

 

H1 2015

H1 2016

 

Change

 

 

€ million

€ million

 

Reported %

Fx & p adj. %

 

€ million

€ million

 

Reported %

Fx & p adj. %

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

Polyurethanes

 

1,638

1,482

 

–9.5

–6.7

 

3,189

2,883

 

–9.6

–7.7

Polycarbonates

 

828

831

 

+0.4

+3.7

 

1,592

1,617

 

+1.6

+3.6

Coatings, Adhesives, Specialties

 

561

532

 

–5.2

–3.0

 

1,095

1,044

 

–4.7

–3.5

Other Covestro business

 

158

130

 

–17.7

–18.4

 

323

281

 

–13.0

–13.0

Total

 

3,185

2,975

 

–6.6

–3.9

 

6,199

5,825

 

–6.0

–4.3

Sales by business unit

  • At Polyurethanes, much lower selling prices that were not offset by higher volumes led to a 6.7% (Fx & portfolio adj.) decline in sales to €1,482 million.
  • Polycarbonates improved sales by 3.7% (Fx & portfolio adj.) to €831 million, with higher volumes more than offsetting lower selling prices.
  • Sales at Coatings, Adhesives, Specialties fell by 3.0% (Fx & portfolio adj.) to €532 million, as selling prices were down slightly against the prior-year quarter. Volumes were level year on year.

Earnings

EBITDA before special items of Covestro improved by 7.3% to €543 million in the second quarter of 2016 (Q2 2015: €506 million). The impact of lower selling prices was more than compensated by the net effect of lower raw material prices and higher volumes. Earnings were diminished by a negative currency effect of around €5 million.

EBIT rose year on year by a substantial 32.0% to €367 million. There were no special items (Q2 2015: minus €59 million).

First half of 2016

Sales

Sales of Covestro fell by 4.3% (Fx & portfolio adj.) in the first half of 2016 compared with the prior-year period, to €5,825 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 12.6% to €1,047 million. Lower raw material costs compensated the decline in selling prices. Increased volumes also had a positive effect on earnings.

EBIT advanced by 41.4% to €703 million. There were no special items (H1 2015: minus €101 million).