Covestro Q1 Report 2024
In the Performance Materials segment, first quarter sales in 2024 were down 5.7% to €1,689 million (previous year: €1,792 million). This was primarily driven by the 21.3% decline in average selling prices, which coincided with lower raw material prices being passed on to customers. This was set against a rise in volumes sold, which had a sales-increasing effect of 17.3% and was also facilitated by higher plant availability in the Emla region. Exchange rate movements also had a decreasing effect of 1.7% on sales.
In the first quarter of 2024, the Performance Materials segment’s EBITDA was down 40.5% on the prior-year quarter, dropping to €103 million (previous year: €173 million). This was primarily driven by lower margins, with a decline in average selling prices being partially offset by a drop in raw material and energy prices. At the same time, higher fixed costs and exchange rate movements weighed on earnings. On the other hand, the rise in volumes sold had a beneficial effect on EBITDA.
In the first quarter of 2024, EBIT decreased to €–35 million (previous year: €29 million).BIT
Free operating cash flow amounted to €–73 million in the first quarter of 2024 (previous year: €–57 million). The decrease in EBITDA was partially offset by a smaller amount of cash tied up in working capital than in the prior-year quarter.