Covestro's volume growth and substantially higher selling prices resulted in an 83.5 percent year-on-year increase in sales of over EUR 3.9 billion in Q2 2021.

As a result of the volume growth and the overall increase in margins, EBITDA rose to EUR 817 million (previous year: EUR 125 million). This result also includes negative one-time effects of EUR 35 million in connection with the consolidation of RFM. Net income in the second quarter of 2021 was EUR 449 million (previous year: EUR –52 million), and the free operating cash flow (FOCF) increased significantly to EUR 374 million (previous year: EUR 24 million).

“In the second quarter, we were able to build seamlessly on the positive course of business in the first quarter. The reorganization of our business since July 1 also means we’re closer to our customers and optimally positioned to address specific market requirements,” said Dr. Markus Steilemann, CEO, Covestro.

“We’re starting the second half of the year with strong momentum and will continue full speed ahead with driving our vision of becoming fully circular,” added Steilemann.

Given the positive business performance, Covestro had already raised its outlook for earnings in 2021 as of July 12, 2021. The company confirms this guidance today. The Group anticipates EBITDA will be EUR 2.7 billion to EUR 3.1 billion on the back of an improved outlook for margins in the second half of the year. The FOCF is expected to be between EUR 1.6 billion and 2.0 billion and the return on capital employed (ROCE) between 16 and 20 percent. Core volume growth is expected – unchanged – to be between 10 and 15 percent, of which around 6 percentage points is attributable to the RFM business.

“We continued to benefit from ongoing high demand and from a sustained positive price trend in the second quarter while maintaining cost discipline. In addition, the RFM business was fully consolidated for the first time,” said Dr. Thomas Toepfer, CFO, Covestro.

In the second quarter of 2021, the Polyurethanes segment saw core volumes sold grow by 27.8 percent compared with the prior-year quarter. Volumes sold increased in all main customer industries across all regions. The segment’s sales amounting to around EUR 1.8 billion more than doubled compared with the prior-year quarter (EUR 913 million).

In the Polycarbonates segment, core volumes sold rose in the second quarter of 2021 by 15.4 percent over the prior-year quarter. This change is mainly due to growth in volumes sold in the automotive and transportation industry observed across all regions. Higher total volumes sold and selling prices meant sales rose by 56.6 percent to around EUR 1.0 billion (previous year: EUR 648 million).