Admin I Friday, Oct. 27, 2023
BERLIN – Covestro AG, a prominent German manufacturer specializing in advanced polymer materials, experienced a downturn in its financial performance during the third quarter compared to the same period in the previous year.
In the third quarter, Covestro reported a net loss attributable to shareholders of €31 million ($32.74 million), or €0.16 per share, in contrast to a net income of €12 million, or €0.06 per share in the prior year. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) also saw an 8.3% decrease, falling to €277 million compared to the previous year.
Several factors contributed to this decline, including exchange rate fluctuations and a decrease in sales volumes due to reduced demand. On the positive side, higher profit margins partially offset the impact on EBITDA.
This was because the decrease in selling prices was outweighed by lower costs for raw materials and energy, especially when compared to the exceptionally high raw material prices in the previous year.
Quarterly group sales dropped by 22.7% to €3.57 billion compared to the previous year, primarily due to lower selling prices and a minor reduction in the quantity of products sold.
Covestro has adjusted its guidance, aligning it with statements made in the half-year report of August 2023. The company now anticipates an EBITDA of approximately €1.1 billion and expects a free operating cash flow of up to €200 million.
It’s worth noting that Covestro welcomed a new Chief Financial Officer, Christian Baier, in October 2023, following the departure of Thomas Toepfer, who left the company at the end of August 2023.
