LEVERKUSEN (dpa-AFX) - High write-downs have unexpectedly dragged plastics group Covestro into the red in 2022. According to preliminary figures, the bottom line was a loss of around 300 million euros, the DAX-listed group announced in Leverkusen on Friday evening. Analysts surveyed by service provider Vara had expected an average profit of 420 million euros. Covestro also performed somewhat worse than expected in day-to-day business, despite the highest sales in the company's history. As a result, the company's shares fell by around one percent in after-hours trading on Tradegate.

Covestro said the reasons for the loss were write-downs on fixed assets of 470 million euros and valuation allowances on tax receivables of 250 million euros.

"Covestro's business performance last year was significantly impacted by the drastic increase in energy and raw material costs, high inflation and a weakening global economy," Board of Management Chairman Markus Steilemann said, according to the statement. Chief Financial Officer Thomas Toepfer also cited the "recessionary environment" and unscheduled write-downs, pointing to the difficult economic situation in Europe.

Despite all the problems, Covestro reportedly increased sales by around 13 percent year-on-year to a record level of just under 18 billion euros. The Group thus only just missed the average analysts' forecast. However, earnings before interest, taxes, depreciation and amortization (Ebitda) of just over 1.6 billion euros were only slightly more than half as high as in the exceptionally good previous year - and were also below the Board of Management's forecast, which had already been cut. Most recently, the Board had forecast 1.7 to 1.8 billion euros. Analysts had already expected somewhat less than management's latest target.

However, the free operating cash inflow of around 130 million euros reportedly exceeded both the Board of Management's target, which had also been scaled back, and the forecasts of experts. CFO Toepfer viewed this development and the record sales as a positive sign. He said the Group's balance sheet was "very solidly positioned" and that the Group was thus also prepared for a prolonged economic downturn. Covestro plans to publish its annual report on March 2./stw/men/nas