Company News

February 1, 2019

LyondellBasell PO Segment Results

Table 4 – I&D Financial Overview

Millions of U.S. dollars Three Months Ended Year Ended
December 31,
2018
September 30,
2018
December 31,
2017
December 31,
2018
December 31,
2017
Operating income $ 308 $ 431 $ 334 $ 1,716 $ 1,202
EBITDA 379 504 410 2,011 1,490

Three months ended December 31, 2018 versus three months ended September 30, 2018 – EBITDA decreased $125 million versus the third quarter 2018.  Compared with the prior period, Propylene Oxide & Derivatives results decreased approximately $10 million.  Volumes declined primarily due to planned maintenance partially offset by improved margins.  Intermediate Chemicals results decreased approximately $65 million.  Margins declined for most products, primarily acetyls and styrene.  Oxyfuels & Related Products results decreased approximately $40 million. Margin declined primarily due to stronger ethanol pricing relative to crude oil and volume declined due to planned maintenance.

Three months ended December 31, 2018 versus three months ended December 31, 2017 – EBITDA decreased $31 million versus the fourth quarter 2017.  Compared with the prior period, Propylene Oxide & Derivatives results decreased approximately $50 million with volumes declining due to 2018 planned maintenance.  Intermediate Chemicals results increased approximately $35 million.  Margins improved for most products and volume increased for acetyls and styrene.  Oxyfuels & Related Products decreased by approximately $30 million with declines in both margins and volumes.

Full year ended December 31, 2018 versus full year ended December 31, 2017 – EBITDA increased $521 million versus 2017, setting an annual record for 2018.  Compared with the prior period, Propylene Oxide & Derivatives results increased approximately $65 million with improved margins due to strong demand, tight market conditions and improved contracting strategies.  Intermediate Chemicals results increased approximately $345 million driven by margin improvements in all products and improved contracting strategies.  Tight industry conditions drove an increase of over 12% in acetyls prices and a styrene margin increase of 3 cents per pound.  Oxyfuels & Related Products increased by approximately $100 million.  Margins improved with crude oil pricing outpacing butane and volume increased with no planned maintenance in 2018.

http://lyondellbasell.mediaroom.com/index.php?s=43&item=1263

January 31, 2019

Dow DuPont Results

DowDuPont -6% as Q4 sales finish flat, Q1 revs guided lower

|About: DowDuPont Inc. (DWDP)|By: , SA News Editor

DowDuPont (NYSE:DWDP) -6.4% pre-market after reporting Q4 revenues came in flat, hurt by lower customer demand for its appliances and automotive products as well as the drop in oil prices.

DWDP says Q4 sales in the materials science business, its biggest revenue generator, fell 1% Y/Y to $11.8B while volumes rose 1%, as margin compression in materials science, lower equity earnings and currency effects all weighed on EBITDA.

CFO Howard Ungerleider says additional headwinds came from a decline in the price of Brent crude and resulted in lower profit margins for its isocyanates and polyethylene products, and the weaker demand for the company’s appliances and automotive products were “more than normal season slowdown.”

Ungerleider also says the company expects global economic expansion to continue in 2019 at a moderately slower pace than 2018.

In a separate slide presentation, DWDP forecasts Q1 revenues falling by mid single digits vs. analyst consensus of a 5% increase, and sees operating EBITDA down by the low teens percentages.

https://seekingalpha.com/news/3428036-dowdupont-minus-6-percent-q4-sales-finish-flat-q1-revs-guided-lower#email_link

January 31, 2019

Dow DuPont Results

DowDuPont -6% as Q4 sales finish flat, Q1 revs guided lower

|About: DowDuPont Inc. (DWDP)|By: , SA News Editor

DowDuPont (NYSE:DWDP) -6.4% pre-market after reporting Q4 revenues came in flat, hurt by lower customer demand for its appliances and automotive products as well as the drop in oil prices.

DWDP says Q4 sales in the materials science business, its biggest revenue generator, fell 1% Y/Y to $11.8B while volumes rose 1%, as margin compression in materials science, lower equity earnings and currency effects all weighed on EBITDA.

CFO Howard Ungerleider says additional headwinds came from a decline in the price of Brent crude and resulted in lower profit margins for its isocyanates and polyethylene products, and the weaker demand for the company’s appliances and automotive products were “more than normal season slowdown.”

Ungerleider also says the company expects global economic expansion to continue in 2019 at a moderately slower pace than 2018.

In a separate slide presentation, DWDP forecasts Q1 revenues falling by mid single digits vs. analyst consensus of a 5% increase, and sees operating EBITDA down by the low teens percentages.

https://seekingalpha.com/news/3428036-dowdupont-minus-6-percent-q4-sales-finish-flat-q1-revs-guided-lower#email_link

January 29, 2019

Covestro To Stay in Pittsburgh

Covestro isn’t going anywhere

Being a spinoff of Bayer, we’re sad to see the company leave Robinson, but we’re staying put

Like many in the Pittsburgh community, those of us at Covestro were saddened to hear that Bayer is closing its Robinson Township operations. The news hit close to home. Literally, for us.

Our company not only shares the Robinson campus with Bayer, but up until three years ago, many of us were longtime Bayer employees ourselves. When Bayer spun off its material science business in September 2015, Covestro was born. Today, we operate as two independent companies — connected only by our history, and, for the time being, a cafeteria on the Robinson campus.

Over the past three years, Covestro has worked hard to establish itself as a new company with a new identity. Internally, we began building a more diverse, inclusive and innovative culture. Externally, we began building a new brand and reputation. And we showed our colors. All six shades of our brightly colored logo, which we boldly illuminated in a 48-foot-diameter sign in front of our headquarter building along the Parkway West.

But even a massive logo can’t overshadow 80-plus years of history. When the news broke about Bayer, the emails, texts and phone calls came rolling in, as friends, families and neighbors reached out to see if we were OK. In their minds, Covestro was still part of Bayer.

Bayer always will be a part of Covestro. We’re proud of our heritage, because it shaped the company we are today. And that company — Covestro — will continue to build its future in Pittsburgh.

We made our home here more than 60 years ago, and in that time, the city has seen a lot of change. But what attracted our company to the region then is what keeps us here today — world-class university talent, strong civic leadership and a growing economy. The biggest difference between then and now is Pittsburgh’s transformation from its industrial roots into an innovation hub — an inspiring story of reinvention. Today, Pittsburgh is leading the way in education, health care and technology, while consistently outranking its peers as one of the best places to live and work in America.

Our city — like Covestro — has worked hard to forge a new identity. And Covestro shares the city’s passion for creating a more sustainable future, driven by innovation, collaboration and engaged leadership.

Our city — like Covestro — has been greatly influenced by Bayer. The company and its employees believed strongly in giving back to the community, investing time, money and resources to help the region grow and prosper. Covestro is proud to carry that legacy into the future. It’s easy to give back to a city that has given us so much.

Our city — like Covestro — is differentiated by its people. Hard-working, yes. But also innovative, passionate, resilient and generous.

From where we sit in these buildings along Parkway West, the decision our company forefathers made all those years ago continues to pay off. Pittsburgh is home to our North American headquarters. And will be for years to come.

Jerry MacCleary is chairman and CEO of Covestro LLC.

https://www.post-gazette.com/opinion/Op-Ed/2019/01/29/Covestro-isn-t-going-anywhere/stories/201901290027

January 29, 2019

Covestro To Stay in Pittsburgh

Covestro isn’t going anywhere

Being a spinoff of Bayer, we’re sad to see the company leave Robinson, but we’re staying put

Like many in the Pittsburgh community, those of us at Covestro were saddened to hear that Bayer is closing its Robinson Township operations. The news hit close to home. Literally, for us.

Our company not only shares the Robinson campus with Bayer, but up until three years ago, many of us were longtime Bayer employees ourselves. When Bayer spun off its material science business in September 2015, Covestro was born. Today, we operate as two independent companies — connected only by our history, and, for the time being, a cafeteria on the Robinson campus.

Over the past three years, Covestro has worked hard to establish itself as a new company with a new identity. Internally, we began building a more diverse, inclusive and innovative culture. Externally, we began building a new brand and reputation. And we showed our colors. All six shades of our brightly colored logo, which we boldly illuminated in a 48-foot-diameter sign in front of our headquarter building along the Parkway West.

But even a massive logo can’t overshadow 80-plus years of history. When the news broke about Bayer, the emails, texts and phone calls came rolling in, as friends, families and neighbors reached out to see if we were OK. In their minds, Covestro was still part of Bayer.

Bayer always will be a part of Covestro. We’re proud of our heritage, because it shaped the company we are today. And that company — Covestro — will continue to build its future in Pittsburgh.

We made our home here more than 60 years ago, and in that time, the city has seen a lot of change. But what attracted our company to the region then is what keeps us here today — world-class university talent, strong civic leadership and a growing economy. The biggest difference between then and now is Pittsburgh’s transformation from its industrial roots into an innovation hub — an inspiring story of reinvention. Today, Pittsburgh is leading the way in education, health care and technology, while consistently outranking its peers as one of the best places to live and work in America.

Our city — like Covestro — has worked hard to forge a new identity. And Covestro shares the city’s passion for creating a more sustainable future, driven by innovation, collaboration and engaged leadership.

Our city — like Covestro — has been greatly influenced by Bayer. The company and its employees believed strongly in giving back to the community, investing time, money and resources to help the region grow and prosper. Covestro is proud to carry that legacy into the future. It’s easy to give back to a city that has given us so much.

Our city — like Covestro — is differentiated by its people. Hard-working, yes. But also innovative, passionate, resilient and generous.

From where we sit in these buildings along Parkway West, the decision our company forefathers made all those years ago continues to pay off. Pittsburgh is home to our North American headquarters. And will be for years to come.

Jerry MacCleary is chairman and CEO of Covestro LLC.

https://www.post-gazette.com/opinion/Op-Ed/2019/01/29/Covestro-isn-t-going-anywhere/stories/201901290027