Covestro Q4 Net Profit Down, Volume Up; Dividend Plans, Share buybacks; sees earnings growth ahead

(RTTNews) – Covestro AG (CVVTF.PK, COVTY.PK), a maker of high-tech polymer materials, said on Tuesday its fourth-quarter net profit fell 3.2% to 302 million euros from to 312 million euros the previous year.

EBITDA increased by 4.1% year-on-year to EUR 663 million with strong global demand.

Group sales in the last quarter increased by 44.3% to 4.3 billion euros compared to 3.0 billion euros in the previous year, mainly with higher selling prices due to the rise in raw material prices.

Base volumes sold in the fourth quarter of 2021 increased 4.6% year-on-year.

In addition, Covestro plans to propose a dividend of €3.40 per share at the Annual General Meeting on April 21, 2022. This equates to a payout ratio of 41%.

Covestro’s Board of Directors has also decided on a share buyback program with a total volume of approximately €500 million over the next two years.

Looking forward, Covestro expects first quarter 2022 EBITDA to be between €750 million and €850 million.

For fiscal year 2022, Covestro expects an EBITDA value of between €2.5 billion and €3.0 billion.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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