- Core volumes up by 3.0%
- Group sales total around EUR 2.8 billion (–12.7%)
- EBITDA of EUR 456 million (+7.3%) driven by cost-cutting measures
- Net income of EUR 179 million (+21.8%)
- Free operating cash flow rises to EUR 361 million (+48.6%)
- Guidance on full-year earnings raised
- Announced acquisition makes Covestro one of the leading suppliers of sustainable coating resins
In the third quarter of 2020, Covestro increased core volumes by 3.0% year-on-year as the result of a significant improvement in demand. This development was largely driven by volume growth in the APAC region, particularly in China. At the same time, Group sales were down by 12.7% to around EUR 2.8 billion due to lower selling prices. As communicated on October 9, 2020, as preliminary key financial figures, at the time of publication EBITDA outperformed capital market expectations for the third quarter of 2020. At EUR 456 million, this figure was up by 7.3% over the prior-year quarter. The increase is attributable mainly to a lower cost level achieved with cost-cutting measures. Net income rose by 21.8% to EUR 179 million, while free operating cash flow (FOCF) grew to EUR 361 million (+48.6%). This development resulted from an increase in operating cash flows and reduced cash outflows for additions to property, plant and equipment, as planned.
Covestro CEO Dr. Markus Steilemann: "Although the coronavirus pandemic is still causing uncertainty, we have reacted decisively and have taken the right measures, which are now paying off. In the third quarter, demand from our customer industries experienced a strong rebound. The volume growth we achieved shows that we are meeting our customers’ needs and offering the right solutions."