Covestro trims 2024 profit target again in a tough economy (updated)
29/10/2024 06:20
(Adds CFO quote in paragraph 4 and sales details in paragraph
7)
Oct 29 (Reuters) - German chemicals maker Covestro
1COV.DE lowered the upper end of its full-year core profit
forecast range on Tuesday for the second time this year, citing
lacklustre global demand in a challenging economic environment.
The company, whose main products include foam chemicals used
in mattresses, car seats and insulation for buildings, now
expects its annual core profit to come between 1 billion and
1.25 billion euros ($1.08 billion-$1.35 billion).
Covestro had previously forecast its 2024 earnings before
interest, tax, depreciation and amortisation (EBITDA) at 1
billion to 1.4 billion euros.
"Global demand is intact but remains at a low level. We
continue to face challenges in various industries and regions,"
CFO Christian Baier said in a statement.
The company's EBITDA rose 3.6% to 287 million euros during
July-September, but slightly missed analysts' average estimate
of 292 million euros in a company-provided consensus.
Last week, Abu Dhabi's ADNOC said the acceptance period for
its voluntary public takeover offer for Covestro of 14.7 billion
euros has started, with an end date of Nov. 27.
Covestro's third-quarter sales came in at 3.60 billion
euros, up 1% from last year, but below the consensus of 3.68
billion euros.
($1 = 0.9250 euros)
(Reporting by Bartosz Dabrowski in Gdansk; Editing by Sherry
Jacob-Phillips and Subhranshu Sahu)
((bartosz.dabrowski@thomsonreuters.com; +48 58 7696560;))