€DAX-listed Covestro has again boosted its dividend for stockholders: It was resolved at the Annual General Meeting in Bonn to raise the dividend to €2.40 per share, up around 9% over the previous year (€2.20). This means Covestro has increased its dividend for the fourth consecutive time since it became an independent company.
"In the past year, we again achieved strong results in an unsettled year, so we are sharing this success with our stockholders by distributing an attractive dividend," CEO Dr. Markus Steilemann emphasized. In view of the increasingly challenging competitive landscape, several initiatives are underway in the current fiscal year, Steilemann pointed out: "We have taken key steps to actively foster our further growth going forward. Our investments focus on business segments with above-average demand potential and we concentrate increasingly on efficiency," he said.
In his speech, CFO Dr. Thomas Toepfer highlighted the company's continuous drive to create value: "In the use of cash, we remain committed to an attractive dividend policy and value-creating investments," Toepfer said. Following the completion of Covestro's first share buy-back program last year, the Board of Management was authorized to acquire own shares in the amount of up to 10% of the capital stock through April 11, 2024. "This resolution provides us with an additional attractive option for creating value," Toepfer added.
Annual General Meeting voting results on the individual agenda items:
Agenda item 2: Resolution on the use of the distributable profit As proposed by the Board of Management and Supervisory Board, the distributable profit of €439,200,000 for fiscal 2018 reported in the annual financial statements will be used almost in full to distribute a dividend to stockholders. This corresponds to a dividend of €2.40 per no-par value share carrying dividend rights for 2018.
Agenda items 3 and 4: Ratification of the actions of the members of the Board of Management and the Supervisory Board The actions of the members of the Board of Management and Supervisory Board who held office in fiscal year 2018 were ratified.
Agenda item 5: Election of the auditor As proposed by the Supervisory Board, the Annual General Meeting elected KPMG AG Wirtschaftsprüfungsgesellschaft, Düsseldorf, Germany, as auditor for fiscal 2019.
Agenda item 6: Resolution on the amendment of Section 14 of the Articles of Incorporation As proposed by the Supervisory Board and Board of Management, in the future the company will be able to issue invitations to the Annual General Meeting by electronic means in view of the increasing popularity of digital media.
Agenda item 7: Resolution on rescinding an existing and issuing a new authorization to acquire and use own shares The Annual General Meeting voted to authorize the company to again acquire own shares. Own shares may be acquired in the amount of up to 10% of the capital stock through April 11, 2024. The authorization issued on September 1, 2015, was mostly exhausted by the share buy-back program launched in November 2017 and completed on December 4, 2018, and was completed.
Additional information on the Annual General Meeting is provided here: https://www.covestro.com/investors/events/annual-general-meeting/annual-general-meeting-2019
With 2018 sales of EUR 14.6 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, construction, wood processing and furniture, and electrical and electronics industries. Other sectors include sports and leisure, cosmetics, health and the chemical industry itself. Covestro has 30 production sites worldwide and employs approximately 16,800 people (calculated as full-time equivalents) at the end of 2018.
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.