Plastics manufacturer Covestro reports an increase in sales volumes for the second quarter of 2024, particularly in the Asia-Pacific region and EMLA. At EUR 3.7 billion, Group sales remained roughly at the previous year's level (previous year: EUR 3.7 billion) due to the lower level of selling prices as a result of demand, according to the Group. However, EBITDA in the second quarter fell by 16.9% to EUR 320 million (previous year: EUR 385 million). In its forecasts, Covestro had assumed values between EUR 270 million and EUR 370 million. Overall, the company posted a loss of EUR 72 million, compared to a profit of EUR 46 million in the previous year.
Challenging market environment
"The market environment remains very challenging," said Dr. Markus Steilemann, CEO of Covestro. "Our sharp rise in sales volumes shows that we are well equipped for the incipient recovery. In addition, our STRONG transformation program is laying the foundations for us to further expand our leading position in the global market and secure our competitiveness."
Transformation program promises savings
With the global transformation programme, the plastics group aims to position itself more effectively and drive forward digitalization. Annual savings of 400 million euros in material and personnel costs are to be realized worldwide, 190 million euros of which in Germany alone.
Forecast for EBITDA adjusted
The Group expects economic conditions to remain challenging for the rest of the year. The forecast for EBITDA has been adjusted accordingly. The company now expects a figure of between EUR 1 billion and EUR 1.4 billion (previously: between EUR 1 billion and EUR 1.6 billion). For the third quarter of 2024, the Group expects EBITDA of between EUR 250 million and EUR 350 million.