MOSCOW (MRC) -- Covestro, the plastics maker that parent Bayer plans to sell, reported a larger-than-expected earnings increase for the second quarter, commanding higher prices for foam chemicals used in the construction industry amid limited supplies from rivals, said Reuters.
Quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA), jumped 57 percent to 848 million euros (USD989 million), above the 772 million euros expected on average in a Reuters poll of analysts.
Covestro reiterated it was targeting 2017 EBITDA and return on capital employed clearly above 2016 levels.
Covestro, listed separately in October 2015, has pledged it would return cash to shareholders if it cannot find a suitable major takeover target within two years as it eyes 5 billion euros in total operating cash flow after investments over the next five years.
As MRC reported earlier, on 1 September, 2015, Bayer MaterialScience became known as Covestro. Bayer aims to float this business on the stock market by mid-2016 at the latest. The plans for the carve-out of Bayer MaterialScience were announced in September 2014.
Covestro (formerly Bayer MaterialScience) is an independent subgroup within Bayer. It was created as part of the restructuring of Bayer AG from the former business group Bayer Polymers, with certain of its activities being spun off to Lanxess AG. Covestro manufactures and develops materials such as coatings, adhesives and sealants, polycarbonates (CDs, DVDs), polyurethanes (automotive seating, insulation for refrigerating appliances) etc.
MRC