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In the three months up to the end of June, activity was more dynamic than in the first quarter. Sales rose 10.4% to 3.86 billion euros. Analysts had forecast that an increase of 5.9% to 3.70 billion euros. In the first quarter, revenues increased 5.4%. Sales in the core business grew by 4.4%.
EBITDA was not enough for the first tranche of 1 billion euros reached in the first quarter of 2018 for the first time over a three-month period. The result rose 16.2% to 985 million euros and was therefore higher than the consensus of 970 million euros observers. Covestro itself had a profit target before interest, taxes, depreciation and amortization (EBITDA) of 848 million euros compared to the previous year. In the first quarter, EBITDA jumped to just under 26%.
After tax, the former Bayer subsidiary made 604 million euros, a little less than a quarter more than the previous year, badysts had predicts 582 million euros. In the first quarter, consolidated net income increased by 37.6%.
"Demand for our products continues worldwide, which shows that our strategy is working and that we are addressing key global trends with our products," said CEO Markus Steilemann.
For the full year, Covestro AG has raised the EBITDA forecast, the result should now exceed the figure of the previous year (3.4 billion euros), until now the result had been "approximately" at the level, the Group is also becoming more confident about the return on investment (ROCE). The ROCE should now be about the same level as the year before. Previously, the goal was: to reach almost the 2017 level.
Sales in the core business are expected to grow at a pace in the below-average one-digit range, it has been confirmed. Free cash flow is expected to exceed 2 billion euros, compared to 1.8 billion euros in 2017.
By Barbara Millner
FRANKFURT (Dow Jones) [19659009] WhatsApp Newsletter
Image Sources: Covestro
