Based on the results of the first half of 2019, Covestro has confirmed its guidance for the current fiscal year. As expected, ongoing intense competitive pressure and uncertainties in major sales markets persisted into the second quarter. Whereas core volumes rose by 1.1%, Group sales fell to Euro 3.2 billion (–16.9%) due to lower selling prices. At Euro 459 million, EBITDA stabilized at the level of the first quarter of 2019 (Euro 442 million), but remained well under the outstanding result achieved in the prior-year quarter (–53.4%).

The decline in earnings resulted mainly from lower margins in the Polyurethanes and Polycarbonates segments. Net income declined to Euro 189 million, while free operating cash flow amounted to minus Euro 55 million on account of lower cash flows from operating activities and higher investments.

“The economic situation is still challenging, since global economic and political uncertainties remain,” said CEO Dr. Markus Steilemann. “Nonetheless, we reached our earnings targets and were able to increase our core volumes again in the second quarter. This underscores the trend towards more sustainable solutions, which we offer to many industries.”

The results for the first six months were well under the previous year's level, but this was because 2018 was marked by exceptionally high margins in some product groups.

“Our half-year results met our expectations in the current economic environment. Thus, we confirm our guidance for the fiscal year. At the same time we will closely follow further developments in our major sales markets,” explained CFO Dr. Thomas Toepfer. “The automotive industry developed much weaker than expected, and on the other hand the construction sector as well as the wood and furniture industry evolved better.”

For fiscal 2019, Covestro continues to project core volume growth to be in the low- to mid-single-digit percentage range. FOCF is expected to be between Euro 300 million and Euro 700 million, with ROCE between 8% and 13%. EBITDA for the fiscal year is forecasted to be between Euro 1.5 billion and Euro 2.0 billion, while in the third quarter, the EBITDA is expected to be around Euro 410 million.