As expected, Covestro reported lower sales and far lower profits, but the mechanics behind this is really interesting: -18.3% lower sales prices had a -64.9% effect at the EBITDA level. This shows how sensitive Covestro’s business model is. But one has to keep in mind that the MDI/TDI segment did well the year before. The Q1 figures did not fully match our expectations, but came in above consensus.
29 Apr 2019
A strong price-related drop made profitability collapse
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A strong price-related drop made profitability collapse
Covestro AG (1COV:WBO) | 0 0 1.2% | Mkt Cap: 18,257m
- Published:
29 Apr 2019 -
Author:
Martin Schnee -
Pages:
3
As expected, Covestro reported lower sales and far lower profits, but the mechanics behind this is really interesting: -18.3% lower sales prices had a -64.9% effect at the EBITDA level. This shows how sensitive Covestro’s business model is. But one has to keep in mind that the MDI/TDI segment did well the year before. The Q1 figures did not fully match our expectations, but came in above consensus.