The group expects earnings before interest, taxes,
depreciation and amortisation (EBITDA) in a range of 1.1 billion
to 1.6 billion euros ($1.2 billion to $1.8 billion) for the full
year. It had previously forecast annual EBITDA "well below" the
1.62 billion euros it reported for 2022.
The mid-point of the earnings guidance is above the
company-provided consensus figure of 1.2 billion euros.
The group forecast second-quarter EBITDA between 330 million
and 430 million euros.
It confirmed first-quarter preliminary results that beat
company-provided consensus earlier in April.
Covestro shares were up 4.6% as of 0705 GMT.
($1 = 0.9083 euros)
(Reporting by Bartosz Dabrowski and Andrey Sychev in Gdansk;
Editing by Milla Nissi and Jane Merriman)
(Adds buyback, CFO comment, shares)
By Bartosz Dabrowski and Andrey Sychev
April 28 (Reuters) - German chemicals maker Covestro on Friday adjusted its 2023 core earnings guidance,
putting the mid-point above market expectations, and resumed a
share buyback programme, citing higher margins and improved cost
levels that boosted quarterly results.
Covestro was able to weather macroeconomic uncertainty as it
was supported by easing energy prices in Europe due to the
combination of mild weather, state support measures, and reduced
industrial production helped governments keep increased gas
storage levels.
"We see stabilisation that definitely applies to energy and
raw material costs," Chief Financial Officer Thomas Toepfer told
Reuters in an interview.
"Maybe Covestro's comments might be a signal that inventory
destocking is easing and/or demand is improving," J.P. Morgan
analyst Chetan Udeshi said in a note.
The company, whose main products include foam chemicals used
in mattresses, car seats and insulation for buildings, said it
would resume its share buyback programme due to revised guidance
and the sequential improvement in earnings and volumes.
The buyback, which was halted in the middle of the last
year, will reopen with a next sub-tranche of up to 75 million
euros in May 2023.
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