logo
Plus   Neg
Share
Email

Covestro Q4 Profit Down, Volumes Up; Sees Weak EBITDA, Higher Volume In FY20

Polymer company Covestro (CVVTF.PK,COVTY.PK) reported Wednesday that its fourth-quarter net income fell 53.2 percent to 37 million euros from last year's 79 million euros.

EBITDA was 278 million euros, down 5.1 percent from 293 million euros last year.

Group sales fell 12.5 percent to 2.86 billion euros from prior year's 3.27 billion euros, mainly due to lower selling prices as a result of increased competitive pressure in all segments.

Core volumes in the fourth quarter, however, increased 3.8 percent.

Further, Covestro said it plans to distribute a dividend at the previous year's level of 2.40 euros per share.

Looking ahead, the company expects first-quarter EBITDA to be between 200 million euros and 280 million euros.

For 2020 as a whole, Covestro anticipates low single-digit percentage growth in core volumes. The company assumes that EBITDA for the year as a whole will be between 1.0 billion euros and 1.5 billion euros. In fiscal 2019, EBITDA was 1.6 billion euros.

The financial impact of the corona virus on the current fiscal year 2020 cannot yet be fully predicted.

CEO Markus Steilemann said, "2020 will remain challenging for us. However, we still see long-term demand for high-tech plastics to enable a more sustainable development across a wide range of different key technologies. Therefore, we are consistently gearing our business towards circular economy."

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Walt Disney Co.'s streaming service Disney+ now has 50 million paid subscribers globally, with the company achieving the milestone within five months after its U.S. launch. WeWork's parent company, We Company, said it has filed a lawsuit against Japanese conglomerate SoftBank Group Corp. for failing to consummate a $3 billion tender offer for the company's shares. After WeWork's failed attempt at an initial public offering last year, SoftBank acquired a majority stake in the office sharing company in a bailout, severing most ties with WeWork co-founder Adam Neumann. Walgreens is expanding drive-thru testing for the coronavirus to fifteen new locations in seven states across the U.S. later this week. They include Arizona, Florida, Illinois, Kentucky, Louisiana, Tennessee and Texas. The drive-thru locations are part of Walgreens' collaboration with the administration, federal health agencies, and state and local authorities to expand access to COVID-19 testing.
RELATED NEWS
Follow RTT
>