MOSCOW (MRC) -- Covestro achieved its EBITDA-guidance for the second quarter of 2023 of EUR 330 million to EUR 430 million, said the company.
Group sales decreased year-on-year by 20.9 percent to EUR 3.7 billion (previous year: EUR 4.7 billion). This is mainly due to a demand-related decline in the selling price level and a drop in volumes sold. Combined with lower margins, that resulted in a 29.6 percent fall in EBITDA to EUR 385 million (previous year: EUR 547 million).
Net income was EUR 46 million, a year-on-year fall of 76.9 percent (previous year: EUR 199 million). The free operating cash flow (FOCF) increased from EUR –462 million in the prior-year quarter to EUR –10 million.
“The second quarter of the year was characterized by continued economic weakness and weak demand worldwide. Nevertheless, we achieved our targets for the quarter and are confirming our full-year guidance,” says Dr. Markus Steilemann, CEO of Covestro. “Our focus in this difficult environment is on operating in an efficient and cost-conscious manner. We will continue to serve our customers’ needs in the best possible way, while creating the right foundation for sustainable growth and our vision of becoming fully circular.”
We remind, Covestro has commenced a new manufacturing line for thermoplastic polyurethanes (TPUs) that will be utilized for paint protection films (PPFs). The line is installed at the firm's current Taiwanese facility in Changhua. Products manufactured here will be available in the global market. The world's PPF market is expected to rise steadily until 2030, with Asia-Pacific representing the biggest share of the overall market.