Covestro AG is a German company which produces a variety of

polyurethane Polyurethane (; often abbreviated PUR and PU) refers to a class of polymers composed of organic units joined by carbamate (urethane) links. In contrast to other common polymers such as polyethylene and polystyrene, polyurethane is produced from ...

and polycarbonate based raw materials. Products include isocyanates and polyols for cellular foams,

thermoplastic polyurethane Thermoplastic polyurethane (TPU) is any of a class of polyurethane plastics with many properties, including elasticity, transparency, and resistance to oil, grease, and abrasion. Technically, they are thermoplastic elastomers consisting of linea ...

and polycarbonate pellets, as well as polyurethane based additives used in the formulation of coatings and adhesives. It is a Bayer spin off formed in the fall of 2015 and was formerly called Bayer MaterialScience, Bayer's materials science division.Christopher Alessi for the Wall Street Journal. Sept. 1, 201
Bayer Separates Material Science Business Covestro
/ref> Covestro shares were first offered on the

Frankfurt Stock Exchange The Frankfurt Stock Exchange (german: link=no, Börse Frankfurt, former German name – FWB) is the world's 12th largest stock exchange by market capitalization. It has operations from 8:00 am to 10:00 pm ( German time). Organisation Loca ...

in October 2015. Bayer sold its entire remaining stake in May 2018, Bayer's pension fund had a 6.8% stake managed separately. The main industries served are

automotive manufacturing The automotive industry comprises a wide range of companies and organizations involved in the design, development, manufacturing, marketing, and selling of motor vehicles. It is one of the world's largest industries by revenue (from 16 % such ...

and supply, electrical engineering and electronics,

construction Construction is a general term meaning the art and science to form Physical object, objects, systems, or organizations,"Construction" def. 1.a. 1.b. and 1.c. ''Oxford English Dictionary'' Second Edition on CD-ROM (v. 4.0) Oxford University Pr ...

and home products, and sports and leisure. Their products include

coating A coating is a covering that is applied to the surface of an object, usually referred to as the substrate. The purpose of applying the coating may be decorative, functional, or both. Coatings may be applied as liquids, gases or solids e.g. Pow ...

s and

adhesives Adhesive, also known as glue, cement, mucilage, or paste, is any non-metallic substance applied to one or both surfaces of two separate items that binds them together and resists their separation. The use of adhesives offers certain advant ...

polyurethanes Polyurethane (; often abbreviated PUR and PU) refers to a class of polymers composed of organic units joined by carbamate (urethane) links. In contrast to other common polymers such as polyethylene and polystyrene, polyurethane is produced from ...

that are used in

thermal insulation Thermal insulation is the reduction of heat transfer (i.e., the transfer of thermal energy between objects of differing temperature) between objects in thermal contact or in range of radiative influence. Thermal insulation can be achieved with ...

, electrical housings, and as a component of footwear and mattresses, and

polycarbonates Polycarbonates (PC) are a group of thermoplastic polymers containing carbonate groups in their chemical structures. Polycarbonates used in engineering are strong, tough materials, and some grades are optically transparent. They are easily worke ...

such as Covestro's

Makrolon Polycarbonates (PC) are a group of thermoplastic polymers containing carbonate groups in their chemical structures. Polycarbonates used in engineering are strong, tough materials, and some grades are optically transparent. They are easily worke ...

, which are highly impact-resistant plastics. Covestro polyurethane was used in the 2014 official

FIFA World Cup The FIFA World Cup, often simply called the World Cup, is an international association football competition contested by the senior men's national teams of the members of the ' ( FIFA), the sport's global governing body. The tournament ha ...

football. Before 2019, Covestro enjoyed rapid earnings growth following supply shortages of chemicals used in foams.

Financials

In 2015, the company netted USD revenues of $13.46B, net income of $382M and an operating margin of 5.1%. In 2018, the company's revenues were $16.29B, net income of $2B, and operating margin of 15.5%. In Q1 of 2019, a drop in revenue and net income was seen, with revenues down at $3.54B compared to 2018's Q1 of $4.21B, a 16% drop. Q2 2019 revenues also saw a 16.9% drop from Q2 2018's $4.3B to $3.58B. Likewise with Net income, Q2 2019 also dropped from Q2 2018's $672M to $210M. Among the 3 key segments of the company, Polyurethanes (PUs), Polycarbonates (PCs), and Coatings/Adhesives/Specialties, Polyurethanes experienced 70.5% drop in EBITDA Q2 2019 compared to Q2 2018 due to needing to drop prices from increased supply and competition. Revenues dropped from $2.19B to $1.66B in Q2 2019 as a result. The next biggest drop in key segments was Polycarbonates from revenues $1.18B to $1B Q2 2019 over past year. The price drop of PUs and PCs were -26.8% and -18.8% respectively. According to the report, demand drop of the auto industry led to a drop in volumes for PCs while construction and electronics industries grew.

References

External links

* Chemical companies of Germany Chemical companies established in 2015 Companies based in North Rhine-Westphalia Companies listed on the Frankfurt Stock Exchange Corporate spin-offs Former Bayer subsidiaries German companies established in 2015 Materials science organizations 2015 initial public offerings {{Germany-company-stub

Financials

See also

References

External links