Results of Operations

Covestro Group Summary Income Statements

 

 

 

 

 

 

 

 

 

2017

 

2018

 

Change

 

 

€ million

 

€ million

 

%

Sales

 

14,138

 

14,616

 

+3.4

Cost of goods sold

 

(9,308)

 

(9,918)

 

+6.6

Selling expenses

 

(1,352)

 

(1,408)

 

+4.1

Research and development expenses

 

(274)

 

(276)

 

+0.7

General administration expenses

 

(481)

 

(491)

 

+2.1

Other operating expenses (–) and income (+)

 

85

 

57

 

–32.9

EBIT

 

2,808

 

2,580

 

–8.1

Financial result

 

(150)

 

(104)

 

–30.7

Income before income taxes

 

2,658

 

2,476

 

–6.8

Income taxes

 

(641)

 

(647)

 

+0.9

Income after income taxes

 

2,017

 

1,829

 

–9.3

of which attributable to noncontrolling interest

 

8

 

6

 

–25.0

of which attributable to Covestro AG stockholders (net income)

 

2,009

 

1,823

 

–9.3

Group sales in the reporting year rose 3.4% to €14,616 million (previous year: €14,138 million).

There was a 6.6% increase in the cost of goods sold to €9,918 million (previous year: €9,308 million). The ratio of the cost of goods sold to sales increased to 67.9% (previous year: 65.8%).

Selling expenses were up 4.1% to €1,408 million (previous year: €1,352 million), yielding a ratio of selling expenses to sales of 9.6% (previous year: 9.6%). Research and development (R&D) expenses of €276 million were at the prior-year level (previous year: €274 million). The ratio of R&D expenses to sales was 1.9%, as in the previous year. The assets were used mainly for developing new application solutions for our products and improving products and process technologies. The R&D projects are aligned to sustainability aspects.

General administration expenses saw an increase of 2.1% to €491 million (previous year: €481 million). Other operating income exceeded other operating expenses by €57 million (previous year: €85 million). This development was primarily driven by the proceeds from the sale of the U.S. sheet business in the Polycarbonates segment totaling €36 million.

In the reporting period, amounted to €2,580 million, down 8.1% (previous year: €2,808 million). As a result, the EBIT margin decreased to 17.7% (previous year: 19.9%).

The financial result of minus €104 million (previous year: minus €150 million) was influenced mainly by the net interest expense of minus €47 million (previous year: minus €99 million). Including the financial result, income before income taxes declined 6.8% to €2,476 million (previous year: €2,658 million). The income tax expense of €647 million hovered around the prior-year level (previous year: €641 million). After taxes and noncontrolling interests, was down 9.3% and amounted to €1,823 million (previous year: €2,009 million).

EBIT/earnings before interest and taxes
Income after income taxes plus financial result and income tax expense
Net income
Income after income taxes that is attributable to the stockholders