(Finance) – New cut of the guidance for Covestro. The German chemical company, specializing in synthetic foam for padding and thermal insulation. has reduced for the third time earnings estimates this year, after reporting in the third quarter results below expectationsdue to the high prices of gas and raw materials.
Covestro ended the quarter with a net profit of 12 million eurosalmost halved compared to the same period in 2021. Le sales increased by 7.3% to € 4.6 billion, while EBITDA stood at 302 million euros, down by 65% compared to the previous year and less than the 320 million expected. A result that discounts the high gas prices, which have made operating costs soar. Free operating cash flow was substantially halved to 33 million.
The German company now estimates EBITDA 2022 at 1.7-1.8 billion euro, a marked decrease compared to the 1.7-2.2 billion indicated above. Also cut the estimate of operating cash flow which is indicated between zero and 100 million euros from a range between zero and 500 million.
“For the time being we will have to cope with this unprecedented environment. We are therefore using all the levers at our disposal to guide Covestro in the current situation,” said CEO Markus Steilemann in a statement.
(Photo: © Covestro)