Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Covestro cancels dividend after lower earnings in challenging 2023

Covestro cancels dividend after lower earnings in challenging 2023

(Reuters) -German chemicals maker Covestro on Thursday said it decided not to pay dividends for 2023 after its annual core earnings dropped by a third in a challenging year marked by high energy prices and a weak global economy.

“The year 2023 was one of the most difficult for the chemical industry in recent decades,” chief executive Markus Steilemann said in a statement.

The group, whose main products include foam chemicals used in mattresses, car seats and insulation for buildings, said earnings before interests, taxes, depreciation and amortisation (EBITDA) fell to 1.1 billion euros ($1.19 billion) in 2023, down 33% from 2022, but in line with analysts’ average estimates.

Covestro’s key automotive, construction and furniture end markets, which comprise roughly half of its sales, remained weak during the year, especially in Europe, weighing on the company.

Its sales dropped by 15% year-on-year to 3.3 billion euros in the fourth quarter of 2023, while EBITDA rose to 132 million euros, up from a loss of 38 million euros in the same period of 2022.

The group said the quarterly core earnings improvement came on the back of a mid-three-digit million euro amount fall in fixed costs in 2023.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!

By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

Covestro forecasts 2024 EBITDA between 1 and 1.6 billion euros, and between 180-280 million euros for the first quarter of 2024.

The company is in open-ended talks with bidder Abu Dhabi National Oil Co (ADNOC) over a potential takeover, after a report said ADNOC submitted a preliminary offer of around 60 euros per share.

The Abu Dhabi oil firm was itching toward a higher bid after the talks had stalled recently, Bloomberg reported last week. The German chemicals maker did not comment on the talks in its press release.

($1 = 0.9230 euros)

(Reporting by Andrey Sychev and Ozan Ergenay in Gdansk, Patricia Weiss in Frankfurt; Editing by Miranda Murray and Janane Venkatraman)


Recent Post: