The Urethane Blog

Covestro Profits Improve

Covestro Q3 profit jumps on raw material price drop


* Q3 EBITDA up 44 pct to 471 mln eur

* Sales down 1 pct to 3.02 bln eur

* Polyurethane sales down 8 pct (Adds details on sales)

FRANKFURT, Oct 27 (Reuters) – German plastics maker Covestro said third-quarter core profit jumped by 44 percent, mainly thanks to a significant decline in raw-material prices.

Covestro, which had its market debut this month and was formerly known as Bayer Material Science, said adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) were 471 million euros ($521 million).

Higher demand versus supply and favourable currency effects of 70 million euros also boosted earnings, it said on Tuesday.

Sales fell 1 percent in the quarter to 3.02 billion euros as selling prices decreased in all three of its operational segments, especially polyurethanes, which makes raw materials for versatile foams.

Polyurethane sales fell 8 percent to 1.51 billion euros, despite positive currency effects.

Covestro – whose markets include automotive, electrical and electronics, construction and sports and leisure industries – will publish full third-quarter results including a full-year forecast on Nov. 12. ($1 = 0.9040 euros) (Reporting by Georgina Prodhan; Editing by Ludwig Burger and Gopakumar Warrier)