This led to a loss for the year of 272 million euros for the Leverkusen team for the first time. The Management Board has therefore decided to cancel the dividend for 2022. For 2021, Covestro had distributed EUR 3.40 per share. The stock was down six percent pre-market.
The manager has not lost his optimism yet.
(Photo: imago images/Political Moments)
Essen-based Evonik, on the other hand, is sticking to its dividend of EUR 1.17 for 2022. The specialty chemicals company is obviously coping better with the current situation. It has robust businesses, for example in supplies for the healthcare industry and with special additives. Covestro is at the mercy of global competition from large Asian corporations, especially with its mass-produced plastics.
In 2022, Evonik achieved a record profit: Adjusted EBITDA rose by four percent to around EUR 2.5 billion, and sales increased by 24 percent to EUR 18.5 billion. Evonik was also able to raise prices further in 2022, but sales volumes declined.
Evonik wants to further reduce costs
That is why Evonik boss Christian Kullmann is now cautious, but does not lose his optimism. For the current year, he forecasts a drop in profits to between 2.1 and 2.4 billion euros, which would only mean a slight decline.
“The effects of war, high inflation and massively fluctuating energy prices have demanded a lot from us – and still do,” said Kullmann. “Due to the ongoing uncertainties, our forecast range is broader than in the previous year. We have set ourselves ambitious goals and want to achieve them by joining forces.” Cost savings of 250 million euros should make a contribution to this.
In the first quarter in particular, the negative development of the second half of 2022 is likely to continue. Evonik expects the situation to gradually improve from the second quarter. Covestro initially did not comment on the specific expectations for the second half of the year.
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