Covestro Tops Estimates
Plastics and chemicals maker Covestro said fourth-quarter net income jumped to 124 million euros ($132 million), from a net loss the prior year as it was able to boost prices in a tight market.
The German-based company — which maintains its North American headquarters in Robinson — said adjusted income rose by 52 percent to 390 million euros, beating analysts’ average estimate of 354 million euros.
Covestro’s products are used in insulation foam, automobile parts, electronics and other consumer and industrial applications.
Sales for the quarter increased by 8 percent to 3 billion euros. The company said it also benefited from lower raw material prices.
Covestro was spun out of Bayer AG in 2015 after Bayer said it wanted to focus on its pharmaceutical and life sciences businesses.
Bayer still holds 64 percent of Covestro’s shares, but a German newspaper reported Sunday that the drug giant plans to dispose of its Covestro stake sometime this year.
Patrick Thomas, Covestro’s chief executive, said he did not know details of the sale.
For all of 2016, Covestro’s worldwide sales slipped by 1.5 percent to 12 billion euros.
In North America, sales were 3.2 billion euros, down 6 percent.
Joyce Gannon: firstname.lastname@example.org or 412-263-1580.