Covestro AG: Raised earnings outlook for 2021
Covestro is raising its forecast for EBITDA, free operating cash flow (FOCF) and return on capital employed (ROCE) for fiscal year 2021 as a result of a further improved business?outlook for the second half-year. The new expectation exceeds the previously provided forecast as well as current capital market expectations.
The outlook factors in - unchanged - the acquisition of the Resins & Functional Materials (RFM) business of Koninklijke DSM N.V., Heerlen (Netherlands), which was closed on April 1, 2021.
Capital market expectations are based on the average values of the latest consensus estimates of financial analysts, published by Vara Research on July 7, 2021.
Covestro adjusts its forecast for fiscal year 2021 as follows:
EBITDA is expected to be between EUR 2,700 million and EUR 3,100 million. The previous forecast projected EBITDA between EUR 2,200 million and EUR 2,700 million. The adjustment of the forecast mainly results from a further improved margin outlook for the second half of the year. The consensus expects this figure to be EUR 2,611 million. ? Core volume growth is expected - unchanged - to be between 10% and 15%, of which around 6 percentage points are attributable to the acquisition of the Resins & Functional Materials (RFM) business. ? Free operating cash flow (FOCF) is expected to be between EUR 1,600 million and EUR 2,000 million. The previous forecast projected FOCF between EUR 1,300 million and EUR 1,800 million. The adjustment of the forecast mainly results from the increased forecast for EBITDA while the development of working capital has a negative effect. The consensus expects this figure to be EUR 1,362 million. ? Return on capital employed (ROCE) is expected to be between 16% and 20%. The previous forecast projected ROCE between 12% and 17%. The adjustment of the forecast mainly results from the increased forecast for EBITDA.
The increased EBITDA forecast is based on a preliminary EBITDA for Q2 2021 of around EUR 815 million, that meets the current forecast of between EUR 730 million and EUR 870 million. The consensus expects this figure to be EUR 828 million.
The half-year financial report 2021 will be published on August 6, 2021.
Forward-looking statements This ad-hoc statement may contain forward-looking statements based on current assumptions and forecasts made by Covestro AG. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Covestro's public reports which are available at www.covestro.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments. Contact for investors: Ronald K?hler, Head of Investor Relations Phone: +49 214 6009 5098 E-mail: firstname.lastname@example.org Contact for media: Lars Boelke, Head of Media Relations Phone: +49 1522 8860494 E-mail: email@example.com
12-Jul-2021 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: English Company: Covestro AG Kaiser-Wilhelm-Allee 60 51373 Leverkusen
Germany Phone: +49 (0) 214 60095098 Fax: +49 (0) 214 60097002 E-mail: firstname.lastname@example.org Internet: www.covestro.com ISIN: DE0006062144 WKN: 606214 Indices: DAX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange EQS News ID: 1217795 ? End of Announcement DGAP News Service