For the first time in two years, Leverkusen, Germany-based Covestro issued a quarterly report with figures that were back in the black. For the third quarter of 2024, the company recorded a slight increase - 1 per cent - in sales compared to the same quarter last year, reaching €3.6 bn versus last year’s €3.57 bn. Although sales volumes were up 6.1 percent, lower raw material prices led to lower selling price levels.
At the same time, Ebitda rose by 3.6 percent to €287m with the company reporting a net income of €33 million (2023: €-31m). Free operating cash flow decreased to €112m (previous year: EUR 308 million), primarily due to lower operating cash flows. In light of the continued challenging economic environment, Covestro has narrowed its guidance for the 2024 fiscal year regarding expectations for EBITDA and ROCE above WACC.
“Overall, global demand is intact but remains at a low level. We continue to face challenges in various industries and regions,” says Christian Baier, CFO of Covestro. Covestro has therefore one again narrowed the guidance for the full year and now now anticipates EBITDA of between € 1.0 bn and€1.25 bn, instead of the previously forecast €1.0 bn to €1.4 bn.
Regarding GHG emissions (measured as CO2 equivalents), Covestro continues to expect a figure between 4.4 and 5.0 million metric tons.
“We concluded the third quarter of the year with higher sales volumes and improved earnings,” said Dr Markus Steilemann, CEO of Covestro. “Nevertheless, the current market environment remains challenging. Our focus is therefore clear: We continue to do our homework, focus on the levers we can control and consistently implement our ‘Sustainable Future’ strategy. In doing so, we not only lay the foundation for future success and sustainable growth, but also make steady progress towards becoming fully circular.”