Leverkusen, Germany – Covestro expects its third quarter EBITDA to be EUR456m. This is EUR83m better than earlier estimates because prices were higher and costs lower than expected.
The polyurethane segment is projected to bring in EBITDA of EUR222m, and the coatings, adhesives, specialties (CAS) segment EUR99m. The balance is from the company's polycarbonates business. The information was released in a trading statement ahead of the full Q3 financial announcement later in October.
Covestro will have sold 3% more product by volume in the quarter than the year before, according to the trading statement. This, it said, is because recovery from the effects of the coronavirus pandemic has developed more dynamically than anticipated.
Polyurethane division sales are likely to be about EUR1.3 bn, and CAS about EUR495m. Overall sales are likely to be EUR2.76bn This is about EUR 87m, or 3%, below market expectations.
After a strong start to Q4, the company has upgraded its outlook for the rest of the year. It now expects earnings to be EUR1.2bn because it has a tight hold of costs, and margins are stronger than looked likely earlier this year.