MOSCOW (MRC) -- Covestro said it expects a major increase in profitability in 2015, said PlastEurope.
The company, which was recently listed on the stock market, said it anticipates a substantial increase in adjusted Ebitda in 2015 compared with the EUR1.16 billion (USD1.25 billion) in the previous year. This should be supported by a more favorable supply and demand situation, the company says. Covestro expects sales to improve slightly from the prior-year figure of EUR11.76 billion and forecasts a low-single-digit percentage increase in core volume growth.
Thomas said all three of Covestro’s businesses – including the non-plastics segment Coatings, Adhesives, Specialties – are likely to participate in the positive development. In Polycarbonates, which was boosted by good volume development in Q3, adjusted EBITDA is expected to more than triple this year against the EUR 160m reported last year, with core volume growth in the mid-single-digit percentage range. In Polyurethanes, which has been dogged by lower selling prices of late, adjusted EBITDA is predicted to exceed the 2014 figure of EUR 592m, accompanied by slight core volume growth.
Covestro (formerly Bayer MaterialScience) is an independent subgroup within Bayer. It was created as part of the restructuring of Bayer AG from the former business group Bayer Polymers, with certain of its activities being spun off to Lanxess AG. Covestro manufactures and develops materials such as coatings, adhesives and sealants, polycarbonates (CDs, DVDs), polyurethanes (automotive seating, insulation for refrigerating appliances) etc.
The main industries served are automotive manufacturing and supply, electrical engineering and electronics, construction and home products, and sports and leisure. Covestro has approximately 30 production sites around the globe. The company is divided into 3 principal Business Units (BU) that comprises the core segment of BMS. These are: BU Coatings, Adhesives, Specialties (BU CAS), BU Polycarbonates (BU PCS),BU Polyurethanes (BU PUR).
On September 18, 2014, the Board of Directors of Bayer AG announced plans to float the Bayer MaterialScience business on the stock market as a separate entity. On June 1st 2015 Bayer announced that the new company will be named Covestro.
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