The following is a summary of the Covestro AG (CVVTF) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Covestro reported Q1 2024 sales of €3.5 billion, a drop of 6.2% year-on-year due to lower prices and foreign exchange impacts.

• The achieved EBITDA was at €273 million, despite stronger selling price declines and unfavorable industry supply-demand ratio.

• The Free Operating Cash Flow was negative at €129 million, slightly improved due to working capital management and lower CapEx.

• The company maintained a net debt-to-EBITDA ratio of 2.9 times with a four-quarter rolling EBITDA of €1.1 billion.

Business Progress:

• Covestro anticipates a high single-digit percent volume increase for 2024.

• The company confirmed full year EBITDA 2024 guidance between €1 billion and €1.6 billion.

• The strategic CapEx budget of €800 million focusing on expansion projects and a new copolymer plant will enhance the business entity of engineering plastics.

• Covestro is investing in TDI assets in Germany for cost-efficiency and capacity increase, expecting advantageous competitiveness against imports.

• The upcoming Capital Markets Day on June 27, 2024, emphasizes Covestro's confidence in its business strategies.

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