German chemical company Covestro upgraded earnings estimates in 2021 for the third time and was optimistic about next year’s outlook, adding that it was unclear whether the push from higher prices would continue.
The company, whose products are used to make car seats and phone cases, announced a 89% increase in profits for the third quarter, better than expected, as strong demand allowed it to raise prices to offset higher costs than energy prices and raw materials.
“Overall, we believe we can achieve a very successful result next year,” CFO Thomas Töpfer told Reuters, adding that he could not say at this level whether the rise from higher prices would continue in 2022. .
Covestro stressed that it now expected the 2021 EBITDA to reach 3-3.2 billion euros compared to 2.7-3.1 billion euros a year ago.
The company also upgraded its ROE estimates to 19% -21% from 16% -20% previously, but downgraded its core growth estimates to 10% -12% from 10% – 15%, citing the limited availability of products.
EBITDA for the third quarter rose to 862 million euros from 456 million euros a year ago, compared with analysts’ estimates of 854 million euros.
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Source From: Capital
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