Covestro Raises Forecast
Raised EBITDA and FOCF forecast for fiscal year 2020
Covestro raises its forecast for EBITDA and Free Operating Cash Flow (FOCF) in fiscal year 2020 as a consequence of a better than expected business development in the fourth quarter 2020. The new expectation exceeds the previously provided financial forecast as well as current capital market expectations.
Capital market expectations are based on the average values of latest consensus estimates of financial analysts, published by Vara Research on November 16, 2020.
Covestro adjusts its forecast for fiscal year 2020 as follows:
- EBITDA is expected between EUR 1,440 and 1,500 million. The previous guidance projected an EBITDA at around EUR 1,200 million. The adjustment of the guidance is primarily due to a better margin development in the segments Polyurethanes and Polycarbonates. Consensus expects this number to be EUR 1,199 million.
- Free operating cash flow (FOCF) is expected between EUR 400 and 550 million. The previous guidance projected FOCF between EUR 0 and 300 million. The adjustment of the guidance is mainly the result of an increased forecast for EBITDA. Consensus expects this number to be EUR 309 million.
- Core volume growth is expected – unchanged – to be below previous year (in 2019: +2.0%). This decline is now expected between -5% and -6%.
The 2020 annual report will be published on February 23, 2021.« Previous Post Next Post »