Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Covestro sees 2023 EBITDA at lower end of forecast range

by Uma
0 comment
2023 08 01T052522Z 1 LYNXMPEJ70109 RTROPTP 4 COVESTRO RESULTS

Covestro sees 2023 EBITDA at lower end of forecast range

(Reuters) – German chemicals maker Covestro on Tuesday said it expects its 2023 core profit to be at the lower end of its forecast range after posting a 30% drop for the second quarter due to lower demand and falling volumes.

Covestro, as the whole German chemicals sector, is facing an unprecedented drop in order volumes as customers reduce stocks in a high inflationary environment that dampens demand.

“We currently still do not anticipate an economic recovery in the remainder of the year,” Chief Financial Officer Thomas Toepfer said in a statement.

The company, whose main products include foam chemicals used in mattresses, car seats and insulation for buildings, said earnings before interest, tax, depreciation and amortization (EBITDA) fell 29.6% to 385 million euros ($423 million) in the April-June period, beating analysts’ average estimate of 378 million euros in a company-provided poll.

Revenues in the period fell 20.9% to 3.7 billion euros, which is below a 4.0 billion euros estimate.

The group said it sees EBITDA between 240 million and 340 million euros in the third quarter, and it has predicted full year EBITDA to be in a range of 1.1 billion to 1.6 billion euros.

($1 = 0.9102 euros)

 

(Reporting by Bartosz Dabrowski and Andrey Sychev in Gdansk, editing by Kirsti Knolle)