Covestro 4Q Net Profit More Than Quadruples on Higher Selling Prices

   By Marc Navarro Gonzalez

Covestro AG (1COV.XE) said Tuesday that its fourth-quarter net profit increased more-than fourfold due to higher selling prices and increased sales volumes.

The company--which was formed by the spin off of Bayer AG's (BAYN.XE) specialty plastics division--said net profit in the three months rose to 566 million euros ($702.3 million) from EUR124 million a year earlier. Sales increased to EUR3.52 billion from EUR3.02 billion, with earnings before interest, taxes, depreciation, and amortization reaching EUR879 million from EUR390 million, it said.

"We have achieved an impressive result in 2017 and significantly exceeded our overall targets," said Covestro's Chief Executive Patrick Thomas.

Covestro, which primarily produces polyurethanes and polycarbonates, said it expects volume growth in its core business to increase in the low to mid single-digit percentage in 2018. It added that it expects free operating cash flow to be significantly above the average of the last three years and Ebitda similar to that of 2017.

Covestro said it intends to pay its shareholders a dividend of EUR2.20 a share, compared with EUR1.35 last year.

Write to Marc Navarro Gonzalez at marc.navarro@dowjones.com

(END) Dow Jones Newswires

February 20, 2018 01:49 ET (06:49 GMT)

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