Covestro has released its third-quarter 2022 report. According to the report, Covestro’s business performance was strongly impacted by high energy and raw material prices in the face of the current European energy crisis. However, group sales grew 7.3%, compared with the third-quarter 2021, to €4.6 billion (previously: €4.3 billion) as a result of exchange rate movements and a considerably higher price level, especially in Europe. EBITDA fell by 65% to €302 million (previously: €862 million), meaning that Covestro met its EBITDA forecast for the third-quarter. Covestro said the main reasons for the decline in earnings were lower margins, since the group was able to offset the sharp rise in raw material and energy prices, only to a small extent, by a higher selling price level. The fall in total volumes sold also reduced earnings. The free operating cash flow (FOCF) fell by 91.3% to €33 million (previously: €381 million), in particular due to the lower cash flows from operating activities. Net income in the third-quarter was down by 97.5% to €12 million (previously: €472 million).
"We will have to cope with this unprecedented environment for the time being. We’re therefore using all the levers available to us to steer Covestro through the current situation," said Markus Steilemann, Ph.D., CEO of Covestro. "In particular, the unparalleled price increases for fossil fuels show that Covestro’s strategic focus on becoming fully circular is the right path. Our products are vital in paving the way for a fossil-free future."