Issue 21/2018 - Chemical giants at a glance

WACKER's sales in the third quarter of 2018 amounted to €1.
24 billion, down 5 percent year-on-year and 7 percent month-on-month, including due to lower average prices of polysilicon for solar cells.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the third quarter were €242 million, down 19% year-on-year and 7% sequentially.
Income before interest and taxes (EBIT) of €106.
5 million in the third quarter, with an EBIT margin of 8.
6 percent.
Net profit in the third quarter was €69 million
.
Total sales are expected to grow by a low-single-digit percentage in 2018 and EBITDA by a mid-single-digit percentage for
the full year.


Covestro sales in the third quarter reached €3.
7 billion, up 4.
8 percent year-on-year, due to higher selling prices and volumes.
Core business volumes increased by 0.
2%; EBITDA was €859 million, unchanged from the prior-year quarter, and net profit rose by 1.
0 percent to €496 million
.
In the first nine months of this year, Covestro's cumulative core business sales increased by 1.
5 percent compared with the same period last year.
Sales of EUR 11.
3 billion, up 6.
9% year-on-year; EBITDA amounted to €2.
9 billion, up 13.
7 percent
year-on-year.
Covestro's full-year 2018 EBITDA is expected to be higher than in 2017, with core volumes growing
by a mid-to-single-digit percentage.


In the third quarter of 2018, BASF's sales increased by 8 percent to €15.
6 billion, driven by higher selling prices in all divisions (up 6 percent) and higher volumes (plus 2 percent).
EBIT before special items in the third quarter amounted to €1.
5 billion, down 14 percent year-on-year, due to a significant decline in the contribution of the Chemicals segment.
Net income for the third quarter was $1.
2 billion, down 10%.

BASF's total assets increased by €6.
8 billion to €85.
6 billion
.
Of this amount, the acquisition of important businesses and assets of Bayer contributed EUR 8 billion
.
BASF expects a slight increase in sales in 2018, a slight decline in EBIT excluding special items and a significant decline in
EBIT.


AkzoNobel AkzoNobel's sales in the third quarter of 2018 amounted to €2.
326 billion, down 4% year-on-year; Adjusted operating income for the third quarter was €243 million, up 8% year-on-year; A total of EUR 35 million in cost savings
were realized in the third quarter.
With raw material costs expected to continue to rise in the fourth quarter of 2018, AkzoNobel is ready to address the challenges
with aggressive pricing strategies and cost-saving programs.
The company is implementing the next step in its transformation plan, with additional cost savings of €200 million by 2020 and one-off costs
totalling €350 million between 2018 and 2020.


Honeywell benefited from continued growth in the warehouse automation solutions business, strong aerospace business, and market interest in Solstice^® Demand for low GWP materials and short-cycle process solution software and services, as well as continued strength in the home and ADI global distribution businesses, led to reported sales growth of 6% and organic sales of 7%, operating income margin up 40 basis points and segment margin up 70 basis points to 19.
4%
in the third quarter of 2018.
Honeywell sales are expected to be $41.
7 billion ~ $41.
8 billion for
the full year of 2018.


Corning increased sales and profit across all businesses in the third quarter of 2018 from the same period last year: GAAP sales and core sales were $3.
0 billion, up 15% and 16%, respectively; core income of US$476 million, up 18% year-over-year; Core gross profit expanded to 42% and met expectations, and GAPP gross margin was 41%.

All businesses drove strong performance growth and profit improvement in the third quarter, with Optical Communications sales up 22%, Environmental Technologies up 19% and Specialty Materials up 23%.

The company expects full-year 2018 sales of more than $11.
3 billion and a gross margin of 42%
in the fourth quarter.


Eastman achieved sales revenue of $2.
547 billion in the third quarter of 2018, up 3.
3% year-over-year; EBIT of $517 million, up 11% year-over-year; Adjusted EBIT was $451 million, sales revenue growth of 6% in specialty products (specialty materials and additives and functional materials) and continued solid earnings
in the fiber business.
Third-quarter results reflect the results of Eastman's innovation-driven growth model, continuous cost management, and rigorous capital allocation
.


PPG reported net sales from continuing operations of approximately $3.
8 billion in the third quarter of 2018, up 1% year-over-year, driven by higher selling prices and steadily higher volumes in its aerospace coatings and general industrial coatings businesses.
Net income from continuing operations for the third quarter was $368 million, compared to adjusted net income of $353 million
.
In the fourth quarter of 2018, PPG's performance is expected to be similar to that of previous years, and sales will remain basically stable
.