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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."

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