Covestro AG, a leading German manufacturer of high-tech polymer materials, disclosed an expanded net loss of 35 million euros in the first quarter, a significant drop from a loss of 26 million euros during the same period in the previous year.
Simultaneously, the Group reported a 4.5% dip in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) to 273 million euros from the previous year. This downward shift can be mostly attributed to shrinking margins, though it was somewhat cushioned by a reduction in the cost of raw materials and energy which somewhat balanced out the drop in sales prices.
First quarter sales for the Group slipped 6.2%, totaling 3.5 billion euros compared to the preceding year’s 3.7 billion euros. This was a direct outcome of decreased average sales prices as savings from reduced raw material costs were transferred to their customers.
Looking forward, the Group predicts an EBITDA ranging between 270 million and 370 million euros for the second quarter of 2024. Moreover, for the fiscal year 2024, the Group maintains its projection for the EBITDA, which is expected to be between 1.0 billion and 1.6 billion euros.
