Covestro AG, the German manufacturer specializing in high-tech polymer materials, reported a net profit of 33 million euros for the third quarter, marking a significant recovery from a net loss of 31 million euros in the same period last year.
The company's EBITDA—a crucial indicator of earnings strength—rose by 3.6% to 287 million euros, up from 277 million euros the previous year. This increase falls within the anticipated range.
The firm's total sales showed a slight increase of 1%, reaching approximately 3.60 billion euros compared to last year's 3.57 billion euros. This uplift was achieved despite a decrease in raw material costs that resulted in lower selling prices.
Covestro highlighted a continued rise in sales volumes, especially in the EMLA (Europe, Middle East, Latin America, Africa) and APAC (Asia-Pacific) regions during the third quarter.
Looking forward to fiscal 2024, Covestro has revised its EBITDA guidance, narrowing it in response to ongoing economic challenges. The updated forecast now anticipates EBITDA in the range of 1.0 billion to 1.25 billion euros, adjusted from the previously forecasted range of 1.0 billion to 1.40 billion euros.
Christian Baier, Covestro's Chief Financial Officer, noted that while global demand remains stable, it is still at subdued levels. The company continues to face obstacles across various sectors and geographies. Despite these challenges, Covestro managed a modest increase in EBITDA, suggesting that their strategies for enhancing efficiency and plant reliability are proving effective. However, due to the persistently challenging economic landscape, the company has accordingly adjusted its full-year guidance.
