Covestro sees profit decline in 2022

Recently, Covestro released its 2022 fiscal year report, stating that global challenges will have a significant impact on Covestro's performance in 2022.

The financial report shows that although Covestro's sales will grow by 13.0% in 2022, reaching a record high of 18 billion euros, the profit before interest, taxes, depreciation and amortization will drop by 47.6% from 3.1 billion euros in 2021 to 1.6 billion euros. Euro; net profit fell to -272 million euros. This was mainly due to special impairments of non-current assets totaling EUR 463 million and impairment losses on deferred tax assets totaling EUR 255 million.

Despite the challenging economic environment, Covestro has generated positive free operating cash flow of EUR 138 million through strong working capital management. Covestro's greenhouse gas emissions, a key non-financial indicator, were 4.7 million tonnes of carbon dioxide equivalent last year, down from 2021.

Covestro CEO Shi Lewen said: "The combination of multiple crises in 2022 has created unprecedented challenges for Covestro. Covestro has taken more resolute and decisive measures, including reducing energy consumption, cutting costs and developing more Products. The Group's circular economy vision and 'Sustainable Future' strategy have proven to be a solid foundation. The company is constantly adapting its product portfolio to better fit sustainable growth sectors such as wind energy or electric vehicles, meeting the market's increasing demand for circular solutions. growing demand."

Covestro stated that the group is optimizing production capacity in a targeted manner to promote sustainable development, and strengthen product lines and cost postures related to products such as diphenylmethane diisocyanate. In addition, Covestro has signed a series of green power procurement agreements. In 2022, approximately 12% of the Group's global energy demand will come from renewable energy generation. In 2023, this proportion is expected to rise to 16%~18%.