• Successful start into 2017
For 2016, Covestro is almost doubling its dividend of fiscal year 2015 when the materials manufacturer was first listed. This was decided at the Annual General Meeting at the World Conference Center in Bonn on Wednesday. For the first full year as a listed company, Covestro will pay its shareholders a dividend of EUR 1.35 per share compared to EUR 0.70 per share for the abbreviated fiscal year 2015.
Looking back on last year, CEO Patrick Thomas commented: “2016 was an excellent year for Covestro and our shareholders. We reached or exceeded all our financial goals. Demand for our products remains high.” Thomas pointed to a number of the company’s innovative and sustainable developments, including a pioneering vehicle concept for electric mobility, new materials to advance wind power and the use of CO2 as a new raw material.
CFO Frank H. Lutz added: “By addressing the macro trends that affect our clients, we have a solid position in each of our key end markets. On this basis, we want to use the momentum from the successful year 2016 to carry us forward.”
Following a successful first quarter, Covestro is optimistic for the current year. For 2017, the company anticipates core volume growth in the low-to-mid-single-digit percentage range. Free operating cash flow (FOCF) should be significantly above the average of the last three years. Return on capital employed (ROCE) is expected to be significantly above the level of 2016.
The results of the voting of the Annual General Meeting concerning the agenda are detailed below.
Agenda item 2:
Resolution on the use of the distributable profit
As proposed by the Board of Management and Supervisory Board, the Annual General Meeting resolved to utilize the entire distributable profit of EUR 273,375,000 reported in the financial statements for fiscal year 2016. This represents a dividend of EUR 1.35 per non-par entitled share on the capital stock of EUR 202,500,000 entitled to the dividend for fiscal year 2016.
Agenda items 3 and 4:
Ratification of the actions of the Board of Management and Supervisory Board
The actions of the members of the Board of Management and Supervisory Board who held office in fiscal year 2016 were ratified.
Agenda item 5:
Election of the auditors of the financial statements
The Annual General Meeting voted to accept the proposal of the Supervisory Board that PricewaterhouseCoopers GmbH, Wirtschaftsprüfungsgesellschaft, Essen, Germany, be elected as auditor of the annual and consolidated financial statements for the fiscal year 2017.
You will find the results of voting on the individual agenda items at: http://investor.covestro.com/en/events/annual-general-meeting/annual-general-meeting-2017/
With 2016 sales of EUR 11.9 billion, Covestro is among the world’s largest polymer companies. Business activities are focused on the manufacture of high-tech polymer materials and the development of innovative solutions for products used in many areas of daily life. The main segments served are the automotive, electrical and electronics, construction and the sports and leisure industries. Covestro has 30 production sites around the globe and employs approximately 15,600 people (full-time equivalents) as of the end of 2016.
This news release may contain forward-looking statements based on current assumptions and forecasts made by Covestro AG. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Covestro’s public reports which are available at www.covestro.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.