Covestro continues to focus on savings
The chemical company Covestro recorded a decline in sales last year. Despite a loss of 198 million euros in the past year, the company is aiming for an operating profit of between 1.0 and 1.6 billion euros in 2024.
The chemicals group Covestro is taking a cautious view of the new year in a difficult environment. The focus remains on efficiency, according to the company. The DAX-listed company had already prevented an even more significant decline in the operating result in 2023 by making savings. There was no news on the talks with Abu Dhabi National Oil (Adnoc) regarding a possible takeover of the DAX-listed company by the oil group from the United Arab Emirates.
In 2023, Covestro felt the effects of the slump in the Chinese property sector, the weakness of the construction industry and the reluctance of many people to buy consumer electronics, household appliances and furniture. With sales down by a fifth to 14.4 billion euros, Covestro suffered a loss of 198 million euros last year. Shareholders will once again go away empty-handed after no dividend was paid for 2022 due to a loss of 272 million euros.
The Group’s earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by a third to just under 1.1 billion euros in 2023. The fact that the decline was not even more pronounced was due to a reduction in fixed costs by a mid-triple-digit million euro amount. In addition, the energy efficiency of production facilities in Shanghai, China, and in Dormagen, Germany, was increased. This year, Covestro CEO Markus Steilemann is targeting an operating profit of 1.0 to 1.6 billion euros, which in the best-case scenario would be the same as in 2022.
