Page 55 - Plastics News March 2025
P. 55
BUSINESS NEWS
Covestro increases volumes sold and forges
ahead with its transformation
♦ Group Sales of EUR 14.2 billion (–1.4%) “We steadfastly adhered to our strategy in 2024
and forged full speed ahead with our transfor-
♦ EBITDA of EUR 1.1 billion (–0.8%)
mation – despite the challenges the entire chem-
♦ Free operating cash flow of EUR 89 million ical industry once again faced,” says Dr. Markus
(–61.6%) Steilemann, CEO of Covestro. “In particular, the
improvement in our plant availability enabled us
♦ High acceptance ratio for ADNOC's takeo- to significantly increase our volumes sold. We
ver offer
are continuing resolutely along this path creat-
♦ Savings of EUR 400 million per annum by ing the basis for long-term growth with targeted
2028 investments in our competitiveness and sustain-
able future technologies.”
♦ Outlook for 2025: EBITDA between EUR 1.0
billion and EUR 1.6 billion anticipated Investments in production, the circular econo-
my, and efficiency
Despite a persistently difficult market environ-
ment, Covestro rigorously continued its trans- A key component of Covestro’s transforma-
formation in fiscal 2024. The company sold tion is to strengthen production capacities. In
greater volumes worldwide thanks to targeted
measures to increase plant availability. Sales
fell by 1.4% to EUR 14.2 billion (previous year:
EUR 14.4 billion) mainly due to low selling pric-
es. EBITDA remained stable, falling by 0.8% to
EUR 1.1 billion (previous year: EUR 1.1 billion),
and was thus within the expected range. Net in-
come amounted to EUR –266 million (previous
year: EUR –198 million), while the free operating 2024, the company optimized existing plans in
cash flow (FOCF) reached EUR 89 million (previ- Baytown (United States), Shanghai (China) and
ous year: EUR 232 million). ROCE above WACC Tarragona (Spain), among others. Further in-
was –7.4 percentage points (previous year: –6.1 vestments to increase energy efficiency and
percentage points). Greenhouse gas emissions thus competitiveness in production were also
fell to 4.7 million metric tons of CO equivalents made at the TDI plant in Dormagen (Germany).
2
(previous year: 4.9 million metric tons). The main Covestro also recently announced to expand its
reasons for this were lower emission factors at site in Hebron, Ohio (USA) with a low triple-digit
the production sites in Leverkusen, Dormagen, million euro investment. The company aims to
Uerdingen and Brunsbüttel (Germany) and Bay- increase the production capacities of differenti-
town, Texas (United States). ated polycarbonates in the Solutions & Special-
ties segment. Construction is scheduled to begin
March 2025 PLASTICS NEWS 55
