Employees and Pension Obligations

As of March 31, 2020, the Covestro Group had 17,014 employees worldwide (December 31, 2019: 17,201). Personnel expenses were down by €44 million from the prior-year period to €426 million in the first quarter of 2020 (previous year: €470 million). This was mainly due to lower provisions for short- and long-term variable compensation.

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Employees by corporate function1

 

  

 

  

 

 

  

Dec. 31, 2019

  

Mar. 31, 2020

1

The number of employees on either permanent or temporary contracts is stated in full-time equivalents (FTE). Part-time employees are included on a pro-rated basis in line with their contractual working hours. Employees in vocational training are not included.

Production

  

11,162

  

11,058

Marketing and distribution

  

3,314

  

3,254

Research and development

  

1,217

  

1,219

General administration

  

1,508

  

1,483

Total

  

17,201

  

17,014

Provisions for pensions and other post-employment benefits decreased to €1,435 million as of March 31, 2020 (December 31, 2019: €1,965 million). In particular, this was attributable to a higher discount rate in Germany. A negative change in the value of plan assets partly compensated for this development.

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Discount rate for pension obligations

 

  

 

  

 

 

  

Dec. 31, 2019

  

Mar. 31, 2020

 

  

%

  

%

1

The discount rate for pension obligations in the euro area will be calculated by a third-party consulting firm starting in the first quarter of 2020. Adjusted for the change in calculation procedure, the discount rate would have amounted to 1.40% for Germany as of March 31, 2020.

Germany

  

1.00

  

1.901

United States

  

3.00

  

2.90