Core Insights - Covestro reported Q3 2025 results with sales of €3.2 billion, down from €3.6 billion year-on-year, and an EBITDA of €242 million, down from €287 million year-on-year, indicating a challenging market environment [2] - The company faced a net loss of €47 million compared to a profit of €33 million in the same period last year, primarily due to weak demand, oversupply, and production disruptions caused by fires [2] - The STRONG transformation plan initiated in 2024 is expected to yield cumulative cost savings of approximately €320 million by the end of 2025, contributing to a target of €400 million annual savings by 2028 [2] Business Performance - Functional Materials segment reported sales of €1.5 billion, down from €1.8 billion year-on-year, with an EBITDA of €174 million, up from €125 million year-on-year [2] - Solutions and Specialties segment had sales of €1.6 billion, down from €1.8 billion year-on-year, with an EBITDA of €196 million, down from €208 million year-on-year [3] New Business Developments - Covestro completed the acquisition of Pontacol AG, expanding its film business into specialized cast and blown film sectors, targeting opportunities in medical technology, transportation, and textiles [4] - The company signed an agreement to acquire two HDI derivative production facilities in Thailand and the USA, enhancing its aliphatic isocyanate production and supporting long-term growth in the coatings and adhesives division [4] - Covestro narrowed its full-year performance forecast, now expecting EBITDA between €700 million and €800 million, with free operating cash flow projected between -€400 million and -€200 million [4]

Core Viewpoint - The article highlights the disappointing financial performance of major chemical companies, including Covestro, BASF, and Dow, as well as Sinopec, indicating a broader trend of economic weakness in the industry [1][6]. Covestro Performance Summary - Covestro reported stable sales volume but a revenue decline of 8.4% to €3.4 billion, with EBITDA down 15.6% to €270 million, and a net loss of €59 million compared to a loss of €72 million in the same period last year [2]. - The Functional Materials segment generated €1.6 billion in sales (down from €1.8 billion), with EBITDA of €149 million (down from €196 million). The Solutions and Specialties segment had sales of €1.7 billion (down from €1.8 billion) and EBITDA of €175 million (slightly up from €174 million) [3]. - The company faced significant impacts from unexpected increases in U.S. import tariffs, which disrupted global supply chains for key customer industries, leading to a severe oversupply situation and a substantial drop in global prices, particularly in the Asia-Pacific region [3]. Economic Outlook - For the full year 2025, Covestro anticipates continued economic weakness with no signs of recovery, projecting EBITDA between €700 million and €1.1 billion and free operating cash flow between -€400 million and €100 million [4]. - The third quarter EBITDA is expected to range from €150 million to €250 million [4]. Sinopec Performance Summary - Sinopec expects a net profit attributable to shareholders of between ¥20.1 billion and ¥21.6 billion for the first half of 2025, representing a decline of 39.5% to 43.7% year-on-year [7]. - The company attributes its performance decline to significant drops in international crude oil prices, intense competition in the oil and petrochemical markets, and low margins in the chemical market [8]. - Key production metrics show a decrease in crude oil processing volume and significant declines in gasoline and diesel production, with total refined oil sales down 3.4% [8][9].