Not long after Covestro (Leverkusen / Germany; www.covestro.com) had announced a savings programme for around EUR 350m per year – see Plasteurope.com of 01.11.2018 – the PU and PC producer is lowering its full-year forecast for 2018. Accordingly, the group now expects volume growth in the low single-digit percentage range and a slightly lower EBITDA than in the previous year. The company had previously expected sales to increase in the lower to mid single-digit percentage range, as well as a higher EBITDA than in 2017.

Covestro cites "intense competition, increased costs and formation of provisions" as causes of the adjustments to its full-year forecast. This applies in particular to PU-isocyanates, where the high prices took a downturn in the third quarter of 2018 – see Plasteurope.com of 23.11.2018. Additionally, the shallow Rhine river and the resulting supply problems as well as higher logistics costs played a role. The company also made provisions for its "Perspective" efficiency programme.

In Q3 2018, Covestro's two key businesses "Polycarbonates" and "Polyurethanes" showed opposing developments. While margins for isocyanates in the same quarter of 2017 had never been higher, there is no sign of this now. Volumes were also down 2% – a consequence of some unplanned plant shutdowns. As a result, EBITDA fell by more than one fifth to EUR 432m, while sales stagnated at EUR 1.85 bn.

Polycarbonates witness strong growth. Sales of the transparent polymers increased by 11% to nearly EUR 1.04 bn, while EBITDA rose almost 50% to EUR 315m. Included here is a one-off gain of EUR 36m from the divestment of its US polycarbonate sheet business – see Plasteurope.com of 28.03.2018. Volumes also made up ground with a 5.1% increase.