International. 2016 was a record year for materials manufacturer Covestro. Driven by demand for innovative materials, the Group's core volumes increased by 7.5%. With higher capacity utilization at its plants, adjusted EBITDA increased by 22.7% above the 2015 figure to €2 billion.
Net income doubled from €343 million to €795 million. On this basis, Covestro plans to pay its shareholders a dividend of €1.35 per share.
"Our strategy is paying off. These excellent results highlight the fundamental strength of Covestro," explains CEO Patrick Thomas. "The growing demand for our innovative and sustainable products shows that we are increasingly successful in replacing conventional materials with superior plastics."
In 2016, core volume growth significantly outpaced global Gross Domestic Product (GDP), emphasizing Covestro's strong strategic positioning along with important trends in major client industries. The company was able to consistently increase sales volumes and further improve the utilization of existing production capacity. Covestro also began expanding its capacity in high-growth regions at an early stage to meet growing demand. This is particularly true in the Asian market, where the company put into operation a coating raw material (HDI) production plant and doubles its polycarbonate capacity.
In the Coatings, Adhesives, Specialties (CAS) segment, core volumes remained stable despite the expected contractual termination of trading activities. Adjusted EBITDA increased by 1.8% to €500 million. The fall in commodity prices had a positive effect on earnings. In addition, the trend towards higher quality end products also drove demand for CAS products.
