Covestro takes steady first steps

Cologne, Germany - The new incarnation of the former Bayer MaterialScience business has revealed it is in good financial shape, with strong share price gains.

Since gaining independence from its former parent Bayer, Covestro has got off to a solid start in its first few months.

Following its successful initial public offering on the Frankfurt Stock Exchange in October 2015, the polyurethanes and polycarbonates group’s share price had gained 40 percent by the end of the year.

Covestro’s stock market standing was also helped by a good set of maiden results in February.

Its sales in 2015 increased by 2.7 percent to €12.1bn (£9.7bn), and adjusted earnings before interest tax depreciation and amortisation (Ebitda) were boosted by 41.3 percent to €1.64bn (£1.31bn).

The sales growth “was exactly in line with our forecast – we delivered our promise,” said Patrick Thomas, Covestro’s chief executive, at its results conference in Cologne in February.