Keschuang accelerates the implementation of efficiency improvement plan

Novel coronavirus pneumonia is rampaging around the world, and the company is unable to fully predict the financial impact of the outbreak on its fiscal year 2020, according to the latest report But kostron is active in short-term initiatives such as more efficient cost management and a review of all existing and planned investments In addition to increasing the company's business impact, the focus in 2020 will still be on efficiency At present, Cisco is accelerating the implementation of a long-term project aimed at improving energy efficiency Since its launch in October 2018, the project has helped the company cut costs by about 150 million euros in the previous fiscal year In 2020, the company aims to save 250 million euros through the project, and by the end of 2021, it is expected to achieve the annual cumulative savings of about 350 million euros "In the current market environment, we can only maintain the required financial flexibility and achieve success through more efficient operation, prioritization of projects and constant investment review," the CFO said At the K 2019 International Plastics Exhibition held in Dusseldorf, Germany last year, kostrong demonstrated a number of innovative products aimed at global challenges such as urbanization, future travel and climate change As an innovation leader, kostrong and its materials keep pace with the times Over the next few years, the company will focus on maximizing the business potential of these innovations In the summer of 2019, the new board member and chief business officer of covestro said that she would focus on improving the sales strength of covestro Her goal is to continue to strengthen the customer-centric concept, optimize and promote the digitalization of marketing strategy, and explore attractive market opportunities more efficiently The company will continue to review investment projects and focus on long-term goals In 2019, kostron's total investment reached 910 million euros, the highest in the company's history In terms of investment project management, the company always pays attention to efficiency and optimal use of capital For fy2020, covestro expects the core business sales to achieve a low single digit percentage growth, while the free operating cash flow is expected to remain within 400 million euros, with the return on capital occupied at 2% - 7% The company expects EBITDA of the whole year to be between 1 billion and 1.5 billion euros, and that of the first quarter to be between 200 million and 280 million euros Despite the tough market challenges, kostrong has achieved its fy19f target Core business sales increased by 2.0% year on year The group's sales fell 15.1% to about 12.4 billion euros due to increased competition in various sectors and low sales prices As a result, EBITDA fell 49.9% year-on-year to about 1.6 billion euros, in line with expectations, but net profit fell 69.7% to 552 million euros, and free operating cash flow decreased 71.7% to 473 million euros Still, the company plans to pay a dividend of 2.40 euros per share, the same as the previous year "There are many geopolitical and macroeconomic uncertainties in 2019, although the market demand for our materials has not changed This confirms our view that plastics will be more valuable in the future than ever before " The chief executive said "2020 will remain a challenging year for us However, we also see the long-term market demand for high-tech plastics, which can help different key technology areas to further achieve sustainable development Therefore, our business is also developing in the direction of circular economy.