The challenges of the market environment continue to keep Cosco's performance robust

Group's sales rose 4.8 per cent to 3.7 billion euros
core business sales held steady
EBITDA reached 859 million euros, flat from last year
net profit rose 1.0 percent to 496 million euros
due to investment Increased free-to-operate cash flow fell 12.2 per cent to EUR 578 million
co-cost savings target: EUR 350 million per year
despite increasingly challenging market conditions, Cosco continued its positive performance since 2018 and achieved solid results in the third quarter. Third-quarter sales rose 4.8 per cent year-on-year to 3.7 billion euros, helped by higher sales prices and sales. Despite limited product supply capacity, core business sales edged up 0.2%, maintaining the same level as the same period last year
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. Group EBITDA was also flat at EUR 859 million, compared with the same period last year. Profit margins in the polyurethane segment declined, but this impact was offset by higher margins in the polycarbonate segment. Net profit rose 1.0 per cent to 496 million euros. Earnings per share rose 6.6 percent to 2.59 euros, helped by an ongoing share buyback program. Free operating cash flow (FOCF) fell 12.2 per cent to EUR 578 million as a result of increased investment.
Markus Steilemann, chief executive of Cosco Ventures, said: "We continue on the path to success. The identified investments will guide us and lay the foundation for future organic growth. We will expand capacity across all business segments to consolidate our leadership position in highly attractive industries and grow faster than the global economy in these areas. In addition, we will improve the cost structure in the medium term through the Efficiency Improvement Program.
Cosco recently announced an investment of approximately EUR 1.5 billion to expand MDI capacity at its Baytown, Texas, site and build a world-class plant of 500,000 tons/year, which is expected to start production in 2024. At the same time, the company is promoting investment projects at its bases in Blomsbee, Germany, Tarragona, Spain, Antwerp, Belgium, and China to increase the production capacity of MDI and its preambles, thereby benefiting from global market growth. In the long run, the MDI market is expected to grow at an average annual rate of about 5%, about 2 percentage points higher than global GDP growth.
is also committed to developing innovative products to help achieve sustainable development. For example, the company is developing new thermoplastic polyurethane products made from carbon dioxide as raw materials, the first of a series of products to be released in the fall of 2018. These new polyurethanes have less ecological impact than conventional materials and help meet the need for more sustainable solutions.
.Thomas Toepfer
, chief financial officer of Cosco Ventures, confirmed in its full-year financial guidance: "The third quarter performance was in line with our expectations. We note that the challenges facing the global economy are increasing, and that our supply capacity in Europe and Asia has been affected over the past quarter. Despite this, we were able to maintain stable sales. Against this background, today we confirm our financial guidance for 2018. Co
expects to achieve medium- to low-single-digit percentage growth in core business sales in 2018. Free operating cash flow is expected to exceed 2 billion euros. The Company expects the Return on Occupied Capital (ROCE) to be the same as in 2017, while maintaining its forecast that EBITDA will be higher than 2017 levels.
Cosco continued its share buyback program in the third quarter, launching a third buyback in August. Since the start of the scheme, shares totalling about 1.2 billion euros (nearly 8 per cent of equity) have been repurchased. Cosco's overall goal is to buy back up to 1.5 billion euros or 10 percent of its issued equity by mid-2019.Cost savings target: EUR 350 million per year
at the same time, Cosco has made good progress on another strategic lever: increased efficiency and efficiency through increased cross-sectoral collaboration to increase the use of digital solutions. Cost savings of up to 350 million euros per year by 2021 are aimed at limiting the growth of operating costs. The measures identified are primarily aimed at permanently reducing non-labour costs, but the company will still reduce about 900 full-time jobs worldwide, such as in the executive sector. The company will advance the downss reduction program through socially acceptable solutions, and in Germany it has agreed with the Working Council on a solution.
growth in the polycarbonate and coatings, adhesives and specialty chemicals segments
sales in the polyurethane segment fell slightly by 1.2% to EUR 1,849 million in the third quarter. The decline in sales in EMLA (Europe, the Middle East, Africa and Latin America excluding Mexico) and the Asia-Pacific region was offset by growth in the NAFTA (UNITED States, Canada and Mexico) region. The reasons for the decline include price changes, exchange rate effects, and uterus plant shutdowns. Sales of the core business in the polyurethane segment fell 2.0 per cent. EBITDA in the segment fell 21.5 percent to 432 million euros. The main reason is the increase in the purchase price of raw materials.
continued to grow strongly in the third quarter, with sales up 11.3 per cent to EUR 1,038 million. Core business sales rose 2.6 per cent and sales prices rose, which had a positive impact on sales.
sales growth in the U.S.,M.A., EMLA and Asia Pacific, offsetting declines in the NAFTA region. EBITDA in the sector rose 49.3 per cent to 315 million euros, helped by higher margins and prices. This result includes non-recurring revenues of EUR 36 million from the sale of the US sheet business.
the coatings, adhesives and specialty chemicals segment increased by 8.8% to EUR 606 million. The sector grew in all three regions. Sales of the business's core business also surged in the third quarter, up 7.2 per cent from a year earlier. EBITDA rose 0.8 percent to 126 million euros, roughly the same level as last year.
the first nine months of 2018
Cosco's results for the first nine months of 2018 provide a solid overall basis for the full year. Cumulative core business sales increased 1.5% year-on-year. Sales rose 6.9 percent to 11.3 billion euros and EBITDA rose 13.7 percent to 2.9 billion euros. In addition, the company's freelance cash flow rose 9.9 percent to 1.3 billion euros.
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