Half Year 2024 Covestro AG Earnings Call Transcript
Key Points
- Covestro AG (CVVTF) reported a strong volume increase of 9.3% year on year, indicating robust demand.
- The company achieved an EBITDA of EUR320 million, landing at the midpoint of their guidance range.
- Covestro AG (CVVTF) has launched a new transformation program aiming for annual savings of EUR400 million by 2028.
- The company is on track for a high single-digit percentage volume increase for the full year 2024.
- Asia Pacific region, particularly China, continues to show positive growth across all industries.
- Lower prices are still affecting sales, which came in at EUR3.7 billion.
- Free operating cash flow was negative EUR147 million, in line with expectations but still a concern.
- EBITDA decreased by 17% year on year due to a negative pricing delta and higher raw material costs.
- The company narrowed its EBITDA guidance for 2024 to EUR1 billion to EUR1.4 billion, reflecting ongoing challenges.
- The auto industry exhibited a flattish development, with significant declines in North America.
Welcome to the Covestro earnings call on the second quarter results. The company is represented by Markus Steilemann, CEO; and Christian Baier CFO. (Operator Instructions) You will find the quarterly statement and earnings call presentation on our IR website. I assume you have read the Safe Harbor statement.
With that, I would now like to turn the conference over to Markus.
Thank you, Ronald, and hello and a warm welcome to our second quarter call. The highlight of the second quarter were the continued strong volume increase of 9.3% year on year. With this, we are fully on track to our target of a high single-digit percentage volume increase in the full year 2024.
However, lower prices are still affecting sales, which came in at EUR3.7 billion. We achieved an EBITDA of EUR320 million landing on midpoint of our guidance range. Free operating cash flow was minus EUR147 million, in line with our expectations. And we are narrowing our EBITDA guidance to
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