The former Bayer MaterialScience, Covestro said Thursday it has seen its share price nearly double from its original offering of 24 euros per share. On Thursday, the stock was trading at 45.23 euros on the Frankfurt Borse stock exchange.
“We have completed a complex transformation process in a short time and shown what we are capable of. We are very proud of that,” said chief executive officer Patrick Thomas. “Covestro has developed to the great satisfaction of its customers, investors and other stakeholders.”
Covestro, formed with a stock flotation on the German stock market, is among the world’s largest polymer companies, including products for the textiles, synthetic leather and shoe industries.
Thomas pointed out that the operating result — adjusted earnings before interest, taxes, depreciation and amortization — has been increased each quarter since the company became independent.
For the six months ended June 30, EBITDA rose 14.9 percent to 1.1 billion euros, or $1.2 billion, while sales fell 6.4 percent to 5.9 billion euros, or $6.5 billion, year-over-year due to lower selling price levels in all operating segments. Net income of the Covestro Group gained 54.3 percent to 412 million euros, or $452.5 million.
Covestro’s main segments served are the automotive, electrical and electronics, construction and the sports and leisure industries, including textiles and footwear.
Thomas also said the company is focusing intently on innovation, including a giving all its employees freedom to express their creativity in their fields.
At the same time, Covestro is increasingly anchoring sustainability at every level, with the objective to conserve the environment, advance society and at the same time create economic value. The company has established a series of challenging and measurable targets it wants to achieve by 2025, such as cutting greenhouse gas emissions per metric ton of product manufactured in half relative to 2005.
The company is also breaking new ground when it comes to carbon dioxide. In 2016, Covestro brought a new plant on stream at its site in Dormagen, Germany, in which the CO2 is being used for the first time as a raw material. A CO2-based precursor for the production of polyurethane foam for mattresses and upholstered furniture will soon make its market debut.
“A perfect example of how Covestro combines sustainability and innovation,” Thomas said. “We will have plenty more along these lines on display at K 2016, the world’s largest plastics trade fair, in Düsseldorf, Germany, this October. One highlight is a new vehicle concept intended to promote electric mobility. For the first time ever, all of the glazing is made of polycarbonate.”
Covestro has also gleaned valuable insights for the further development of its products and potential new applications from the Solar Impulse mission — the around-the-world flight completed in July in an ultra-lightweight aircraft powered only by the sun. Covestro designed the cockpit and provided a highly efficient insulating material.
With 2015 sales of 12.1 billion euro, Covestro is among the world’s largest polymer companies. Business activities are focused on the manufacture of high-tech polymer materials and the development of innovative solutions for products used in many areas of daily life. The main segments served are the automotive, electrical and electronics, construction and the sports and leisure industries. Covestro has 30 production sites around the world and as of the end of 2015 employed about 15,800 people.