Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Germany
  4. Xetra
  5. Covestro AG
  6. News
  7. Summary
    1COV   DE0006062144

COVESTRO AG

(1COV)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Covestro sees lower earnings, weaker volume growth in 'challenging' 2020

02/19/2020 | 05:41am EDT
The logo of German chemicals maker Covestro is pictured outside its headquarters in Leverkusen

German chemicals maker Covestro forecast lower first-quarter and 2020 core profit on Wednesday after missing fourth-quarter revenue expectations, citing the impact of the coronavirus outbreak, increased competition and lower prices for its key products.

The former Bayer unit forecast earnings before interest, tax, depreciation and amortisation (EBITDA) between 1.0 billion euros (£830 million) and 1.5 billion euros in 2020, including 200 million euros to 280 million euros in the first quarter. It reported core profit of 442 million euros in the first quarter last year and 1.6 billion euros in 2019.

The first-quarter guidance includes a negative effect of 60 million euros from the coronavirus epidemic, which has restricted the company's production facilities in China, Chief Financial Officer Thomas Toepfer said in a conference call.

The company expects some of the negative effects to fade in March as production returns to normal in certain areas of China, he added.

This year "will remain challenging for us, although we still see the long-term need for high-tech plastics for sustainable development across a variety of key technologies," Chief Executive Markus Steilemann said.

Covestro shares were up 3.4% at 0900 GMT, topping Germany's blue-chip DAX index, but down 1.7% so far this year, lagging the sector and the broader market.

The group, whose main products include foam chemicals and clear plastics, said it planned additional 200 million euros of cost savings this year as part of its ongoing efficiency push.

A company spokesman said job cuts would not form part of the savings, which would instead come from more efficient management of administrative, procurement and maintenance expenses as well as a review of all existing and planned investments.

JP Morgan and Berenberg analysts have said the company will benefit from cutting its investment budget to focus on the most promising shorter-term projects if it wants to maintain high dividend payouts.

Covestro reported fourth-quarter revenue at 2.86 billion euros, 3.7% below analysts' average expectations in a company-provided poll.

EBITDA fell 5.1% to 278 million euros in the three months, broadly in line with the 277 million euros expected on average by a poll of analysts provided by the company.

"From our conversations with investors over the past weeks, we got the impression their expectations were even lower than consensus," Baader Helvea analysts said, adding that in-line results and outlook could provide a positive trigger for the company's shares.

By Zuzanna Szymanska


ę Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
AT HOME GROUP INC. -0.08% 36.99 End-of-day quote.0.00%
BASF SE 1.00% 62.39 Delayed Quote.-4.56%
BAYER AG 1.20% 45.815 Delayed Quote.-5.99%
COVESTRO AG -0.66% 54.48 Delayed Quote.8.64%
DAX 1.43% 15348.53 Delayed Quote.10.30%
WANHUA CHEMICAL GROUP CO., LTD. 0.52% 112.03 End-of-day quote.23.06%
All news about COVESTRO AG
09/15COVESTRO : More component performance and design freedom
PU
09/14COVESTRO : High-performance automotive refinish reaches new standard of industrial hygiene
PU
09/14ROYAL DSM N : Dutch DSM to exit materials to focus on food, health and climate
RE
09/13COVESTRO : introduces Somos« PerFORM HW, a DLP/LCD 3D printing material for tooling
PU
09/13COVESTRO : and ParaMatters jointly develop anisotropic optimization software
PU
09/08COVESTRO : receives ISCC Plus certification for its Shanghai site
PU
09/08COVESTRO : Buy rating from Goldman Sachs
MD
09/06COVESTRO : Buy rating from Morgan Stanley
MD
09/03COVESTRO : Germany's Covestro to Lay Off 1,700 Workers from Global Staff
MT
09/03Covestro to cut up to 10% of jobs worldwide -paper
RE
More news
Analyst Recommendations on COVESTRO AG
More recommendations
Financials
Sales 2021 14 132 M 16 567 M 16 567 M
Net income 2021 1 422 M 1 667 M 1 667 M
Net Debt 2021 1 016 M 1 192 M 1 192 M
P/E ratio 2021 7,50x
Yield 2021 4,85%
Capitalization 10 593 M 12 413 M 12 418 M
EV / Sales 2021 0,82x
EV / Sales 2022 0,77x
Nbr of Employees 18 039
Free-Float 97,0%
Chart COVESTRO AG
Duration : Period :
Covestro AG Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends COVESTRO AG
Short TermMid-TermLong Term
TrendsNeutralNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 21
Last Close Price 54,84 €
Average target price 67,37 €
Spread / Average Target 22,9%
EPS Revisions
Managers and Directors
Markus Steilemann Chief Executive Officer
Thomas Toepfer Chief Financial Officer & Labor Director
Richard Pott Chairman-Supervisory Board
Klaus Schńfer Chief Technology Officer
Petra Kronen Vice Chairman-Supervisory Board
Sector and Competitors
1st jan.Capi. (M$)
COVESTRO AG8.64%12 432
LG CHEM, LTD.-14.93%43 631
DOW INC.1.23%41 606
FORMOSA PLASTICS CORPORATION5.81%23 322
HANGZHOU FIRST APPLIED MATERIAL CO., LTD.86.51%19 299
FORMOSA CHEMICALS & FIBRE CORPORATION-2.83%17 290