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Adjusted EBITDA surges 44.5% at Covestro in Q3
28
Oct '15
Adjusted EBITDA for the three months to September 30, 2015 soared 44.5 per cent year on year at Covestro, one of the world's largest polymer producers.

In a press release, Covestro said compared with the prior-year period, adjusted EBITDA surged 44.5 per cent to €471 million in the third quarter of 2015.

“One main reason for this was a significant decline in raw material prices, which against the backdrop of a more favourable supply and demand situation more than offset a decline in selling prices,” it explained.

Currency effects of around €70 million also contributed positively to this increase in earnings.

Covestro sales however declined in the third quarter of 2015 by 1.4 per cent from a year ago period to €3,020 million.

“While volumes were level overall with the prior-year period, selling prices decreased in all three operational segments, especially Polyurethanes,” it added.

In the reporting quarter, EBIT, too, increased significantly to €287 million, up a massive 64 per cent from the third quarter of the previous year.

Covestro informed that EBIT reflects special items of a negative €18 million comprising expenses for the consolidation of production sites as well as expenses for and proceeds from the carve-out and stock market flotation.

Adjusted EBIT in the quarter under review too surged 72.3 per cent to €305 million vis-à-vis the third quarter of 2014.

In the first nine months of 2015, Covestro sales grew 5.7 per cent year on year to €9,284 million, primarily helped by expansion of volumes in all segments.

“Additional momentum came from currency effects, which overall more than offset the decline in selling prices, especially at Polyurethanes and Polycarbonates divisions,” it observed.

Compared with the same period of 2014, adjusted EBITDA for the first three quarters of 2015 too improved by a substantial 45.6 per cent to €1,385 million.

“Considerably lower raw material prices and higher volumes more than offset the decline in selling prices, while currency effects had a positive impact of around €200 million,” the company observed.

With 2014 sales of €11.8 billion, Covestro, formerly known as Bayer MaterialScience, has 30 production sites around the globe and employed approximately 15,700 people at the end of September 2015. (AR)

Fibre2Fashion News Desk – India

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