The Dax group has to lower the profit forecast.
(Photo: imago images/imagebroker)
Leverkusen Increasing costs and the ongoing corona lockdown in China are thwarting the plastics manufacturer Covestro in its annual targets. For 2022, Covestro now expects an operating profit (Ebitda) of between 2.0 and 2.5 billion euros, as the Leverkusen company announced on Monday evening.
So far, the group had expected a decline in operating profit to 2.5 to 3.0 (previous year: 3.1) billion euros. Analysts had recently forecast an average of 2.7 billion euros.
In addition to higher energy and raw material costs, Covestro also referred to weaker growth in the global economy. In mid-April, the company confirmed the forecast at its annual general meeting. But in China, the economic metropolis of Shanghai is still largely in a hard lockdown due to the outbreak of the Omicron variant, which is clouding confidence at Covestro. The board also lowered its guidance for operating free cash flow.
In the first quarter, Covestro achieved an operating profit of 806 (same period in the previous year: 743) million euros, which is within the scope of the previous forecast of between 750 and 850 million euros. Covestro thus performed better than analysts had expected, who had forecast an average of EUR 774 million. For the second quarter, however, the group only expects earnings of between 430 and 530 (same period last year: 817) million euros.
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