Covestro

Key Data – Covestro

 

 

Q2 2016

Q2 2017

 

Change

 

H1 2016

H1 2017

 

Change

 

 

€ million

€ million

 

Reported %

Fx & p adj. %

 

€ million

€ million

 

Reported %

Fx & p adj. %

2016 figures restated; Fx & p adj. = currency- and portfolio-adjusted; Fx adj. = currency-adjusted

1

For definition see Annual Report 2016, Chapter “Alternative Performance Measures Used by the Bayer Group.”

Sales

 

2,975

3,479

 

+16.9

+15.8

 

5,825

7,043

 

+20.9

+19.6

Change in sales1

 

 

 

 

 

 

 

 

 

 

 

 

Volume

 

+5.0%

+0.6%

 

 

 

 

+5.4%

+5.3%

 

 

 

Price

 

−8.9%

+15.2%

 

 

 

 

−9.7%

+14.3%

 

 

 

Currency

 

−2.7%

+1.1%

 

 

 

 

−1.7%

+1.3%

 

 

 

Portfolio

 

0.0%

0.0%

 

 

 

 

0.0%

0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

€ million

€ million

 

Reported %

Fx adj. %

 

€ million

€ million

 

Reported %

Fx adj. %

Sales by region

 

 

 

 

 

 

 

 

 

 

 

 

Europe / Middle East / Africa

 

1,254

1,380

 

+10.0

+9.9

 

2,464

2,793

 

+13.4

+13.2

North America

 

686

756

 

+10.2

+7.3

 

1,369

1,517

 

+10.8

+7.5

Asia / Pacific

 

866

1,129

 

+30.4

+29.8

 

1,659

2,311

 

+39.3

+38.2

Latin America

 

169

214

 

+26.6

+23.1

 

333

422

 

+26.7

+24.6

EBITDA1

 

543

848

 

+56.2

 

 

1,047

1,695

 

+61.9

 

Special items1

 

39

 

 

 

 

47

 

 

 

EBITDA before special items1

 

543

809

 

+49.0

 

 

1,047

1,648

 

+57.4

 

EBITDA margin before special items1

 

18.3%

23.3%

 

 

 

 

18.0%

23.4%

 

 

 

EBIT1

 

367

688

 

+87.5

 

 

703

1,377

 

+95.9

 

Special items1

 

39

 

 

 

 

56

 

 

 

EBIT before special items1

 

367

649

 

+76.8

 

 

703

1,321

 

+87.9

 

Net cash provided by operating activities

 

309

415

 

+34.3

 

 

478

690

 

+44.4

 

Second quarter of 2017

Sales

Sales of Covestro in the second quarter of 2017 increased by 15.8% (Fx & portfolio adj.) to €3,479 million. Selling prices were much higher overall, especially at Polyurethanes, while volumes matched the prior-year period overall.

Sales by Business Unit

 

 

Q2 2016

Q2 2017

 

Change

 

H1 2016

H1 2017

 

Change

 

 

€ million

€ million

 

Reported %

Fx & p adj. %

 

€ million

€ million

 

Reported %

Fx & p adj. %

Fx & p adj. = currency- and portfolio-adjusted; for definition see Annual Report 2016, Chapter “Alternative Performance Measures Used by the Bayer Group.”

Polyurethanes

 

1,482

1,889

 

+27.5

+26.1

 

2,883

3,783

 

+31.2

+29.7

Polycarbonates

 

831

912

 

+9.7

+8.7

 

1,617

1,866

 

+15.4

+14.2

Coatings, Adhesives, Specialties

 

532

532

 

−0.8

 

1,044

1,096

 

+5.0

+3.9

Other Covestro business

 

130

146

 

+12.3

+12.4

 

281

298

 

+6.0

+5.7

Total

 

2,975

3,479

 

+16.9

+15.8

 

5,825

7,043

 

+20.9

+19.6

Sales by business unit

  • Sales at Polyurethanes increased by 26.1% (Fx & portfolio adj.) to €1,889 million, bolstered by significantly higher selling prices, while volumes remained stable.
  • Polycarbonates saw sales advance by 8.7% (Fx & portfolio adj.) to €912 million due to higher selling prices and slightly expanded volumes.
  • Sales at Coatings, Adhesives, Specialties were flat year on year at €532 million (Fx & portfolio adj. −0.8%). A slight decline in volumes stood against stable selling prices.

Earnings

EBITDA before special items of Covestro improved by 49.0% to €809 million in the second quarter of 2017 (Q2 2016: €543 million). Substantially higher selling prices more than offset the effect of increased raw material prices.

EBIT increased by 87.5% to €688 million, and included a special gain in the amount of €39 million (Q2 2016: €0 million) resulting from the sale of the segment’s North American spray polyurethane foam system house.

Special Items1 Covestro

 

 

EBIT
Q2 2016

EBIT
Q2 2017

 

EBIT H1 2016

EBIT H1 2017

 

EBITDA Q2 2016

EBITDA Q2 2017

 

EBITDA H1 2016

EBITDA H1 2017

 

 

€ million

€ million

 

€ million

€ million

 

€ million

€ million

 

€ million

€ million

1

For definition see Annual Report 2016, Chapter “Alternative Performance Measures Used by the Bayer Group.”

Divestitures

 

39

 

39

 

39

 

39

Restructuring

 

 

17

 

 

8

Total special items

 

39

 

56

 

39

 

47

First half of 2017

Sales

Sales of Covestro increased by 19.6% (Fx & portfolio adj.) in the first half of 2017 compared with the prior-year period, to €7,043 million, due to significantly higher selling prices, especially at Polyurethanes. All business units reported higher volumes.

Earnings

EBITDA before special items of Covestro improved by 57.4% to €1,648 million in the first half of 2017 (H1 2016: €1,047 million). A significant increase in selling prices and higher volumes more than offset higher raw material costs.

EBIT climbed by 95.9% to €1,377 million, and included special gains of €56 million (H1 2016: €0 million) related to the aforementioned sale and the decision made in the first quarter of 2017 to postpone the closure of a production facility until further notice.