Net income of German plastic specialist Covestro up 21.8 pct in Q3 of 2020
Source: Xinhua | 2020-10-28
Net income of Covestro AG, a German company that produces a variety of polyurethane and polycarbonate-based raw materials, rose by 21.8 percent year-on-year to 179 million euros (211 million U.S. dollars) in the third quarter of the year, the company announced on Tuesday.
"Although the coronavirus pandemic is still causing uncertainty, we have reacted decisively and have taken the right measures, which are now paying off," said Chief Executive Officer of Covestro Markus Steilemann in a statement.
At the same time, sales of Covestro fell by 12.7 percent year-on-year to around 2.8 billion euros in Q3 due to declining sales prices, according to Covestro.
Covestro increased core volumes by 3 percent year-on-year as the "result of a significant improvement in demand," the German company noted. The development was largely driven by volume growth in the Asia-Pacific region, particularly in China.
Global core volume growth in the company's auto and transport sector recorded a drop by 5 percent year-on-year, while the automotive volumes in China recorded a double-digit increase, according to Covestro.
"China is the only relevant, large automotive market that has not only proven to be robust in recent weeks and months, but also showed significant growth over the previous year," Steilemann told Xinhua on Tuesday.
"After a challenging first half of 2020," demand from Covestro's main customer industries recovered during Q3, the German company noted. Overall, the results for the first nine months of 2020, however, remained below the previous year's level.
"The recovery from the impact of the coronavirus pandemic has developed more dynamically than so far anticipated," said Chief Financial Officer of Covestro Thomas Toepfer, adding that "we look forward to the fourth quarter with confidence."
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