Polyurethanes and Polycarbonates highly profitable
In the third quarter, core volumes in the Polyurethanes segment were up 4.3% over the same quarter of the previous year. The TDI product group above all contributed to this development. The segment's EBITDA more than doubled to EUR 556 million from the prior-year quarter, a development largely due to higher margins as a result of a generally positive supply and demand situation. In the course of doubling MDI capacity at its Brunsbüttel facility in northern Germany to around 400,000 metric tons per year by the end of 2018, the company already held a topping-out ceremony to celebrate the completion of shell construction at the plant.
The Polycarbonates segment recorded an increase in core volumes of 1.5% compared with the prior-year quarter. As expected, this growth was at the level of the second quarter of 2017. The segment's EBITDA saw an upturn of 8.8% to EUR 211 million. Higher margins and an increase in volumes sold had a positive effect. In this segment's key customer industries, Covestro works closely with designers to develop the products of the future. The company launched an online platform for industrial design for this purpose in September, among other projects.
Core volumes in the Coatings, Adhesives, Specialties segment decreased by 5.0% from the prior-year quarter due to a challenging competitive environment. At EUR 119 million in the second quarter, EBITDA was 12.5% below the previous year's figure. The Group pushes boundaries to continually update its product range: Recently, a solar-powered car designed by students at RWTH Aachen University participated in the nearly 3,000-kilometer World Solar Challenge through the Australian desert, protected by Covestro coatings.
Very positive first nine months of 2017
Covestro showed an excellent performance in the first three quarters of 2017. Core volumes rose by 3.2% over the prior-year period due to continued healthy demand. Sales jumped 19.5% to EUR 10.6 billion, and EBITDA increased by 57.4% to EUR 2.6 billion. FOCF also grew significantly, by 23.8% to EUR 1.2 billion. Thanks to the control termination agreement reached with Bayer AG in September, Covestro has taken a further step toward complete independence.
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