Cosco's earnings report Sales and earnings rose sharply in the third quarter

With a strong recovery in customer demand
and Cosco's aggressive and flexible response
in the face of the epidemic and market challenges
sales and earnings continued to grow significantly in the third quarter
core business sales increased by 3.0%, particularly in Asia
Pacific, particularly in China

Net profit was EUR 179 million (-21.8%)
free operating cash flow was EUR 361 million (-48.6%)
confident about the future
clear full-year 2020 target: upward earnings guidance
The assumption is that economic activity will no longer be severely restricted by curbing the spread of the new coronavirus outbreak.
Group currently expects to
2020 EBITDA of approximately EUR 1.2 billion (previously expected: EUR 700 million to EUR 1.2 billion
core business sales will decline year-on-year
free operating cash flow will be EUR 0-300 million (previously expected: EUR 200 million to EUR 300 million
and the occupied return on capital (ROCE) will be in the median percentage scope (previously expected: -1% to 4%)
to the circular economy
acquisition plan: to become a leading supplier of sustainable coating resins
last month, Cosmos signed an agreement to buy DSM's resin and functional materials (RFM) businessfor 1.61 billion euros. The transaction marks an important step in Cosco's long-term corporate strategy to drive business growth through sustainability and innovation. The integration of RFM into Cosco's coatings, adhesives and specialty chemicals business units will significantly expand the company's portfolio in the high-growth market for sustainable coating resins.
" latest acquisition will drive growth in our business, a major milestone on our path to a circular economy. With RFM, we can better meet global demand for sustainable products and drive innovation more effectively to transform into a circular economy. Dr. Xervin said.

sales growth in the
polyurethane and polycarbonate segments for all business segments
sales growth in the core business segment of the polyurethane segment increased by 4.3% in the third quarter. Sales in the sector fell 11.0 per cent to 1.3 billion euros as sales prices were under pressure from competition in the market over the past year and raw material prices continued to fall. EBITDA in the sector rose 12.2 percent to 220 million euros. Profits in the sector increased as core sales increased and costs were reduced through cost-cutting measures.
business segment grew 3.6 percent in the third quarter. Sales fell 11.1 percent to 801 million euros. This is mainly due to changes in the level of sales prices caused by lower raw material prices. EBITDA in the sector rose 12.1 percent to 148 million euros. Cost-cutting measures have had a positive impact on profitability by reducing cost levels and increasing profit margins.
sales in the coatings, adhesives and specialty chemicals segment fell 6.9 per cent in the third quarter, helped by weaker demand in the automotive, transportation and construction sectors. Sales in the sector fell 15.8 per cent to 495 million euros due to lower total sales and average sales prices. EBITDA fell 10.8 percent to 99 million euros in the third quarter. Lower sales and a small drop in profit margins have put pressure on earnings. While cost-cutting measures have reduced the level of costs, they have not yet fully compensated for these negative impacts.
it's not easy
achieve these results in a challenging 2020
Cosco will continue to push the limits
creating a cycle!