Growth and Innovation
Research and Development
Research and development expenses at Covestro increased by 10.1% (Fx adj.) in the first nine months of 2015 to €192 million (9M 2014: €158 million), including €65 million (Fx adj. +27.7%) in the third quarter (Q3 2014: €47 million). Covestro also invested an additional €62 million in the first nine months of 2015 (9M 2014: €56 million) in joint development projects with customers, including €21 million in the third quarter (Q3 2014: €19 million).
Capital Expenditures, Acquisitions and Cooperations
In July 2015, Covestro introduced a Partner Manufacturer Program to promote cooperation between suppliers, manufacturers and brand owners in the textile industry. The aim is to promote the INSQIN™ technology, which enables the most environmentally friendly possible production of polyurethane-based coated textiles. The first partner is South Korean company Duksung Co., Ltd., a global leader in the manufacture of polyurethane-based imitation leather.
In the Emerging Markets, Covestro posted sales of €3,909 million in the first nine months of 2015 (Fx adj. −2.8%; 9M 2014: €3,639 million), including €1,254 million in the third quarter (Fx adj. −12.1%; Q3 2014: €1,330 million). The company registered a substantial decrease in sales in Asia compared with the prior-year quarter. Business also declined in the Latin America and Africa / Middle East regions, but expanded in Eastern Europe. The Emerging Markets’ share of total Covestro sales was 42.5% in the first nine months of 2015 (9M 2014: 41.8%) and 41.7% in the third quarter (Q3 2014: 43.8%).