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Covestro AG
Earnings Release • Nov 20, 2018
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Earnings Release
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News Details
Ad-hoc | 20 November 2018 13:53
Covestro AG: Guidance for FY 2018 adjusted
Covestro AG / Key word(s): Change in Forecast
Covestro AG: Guidance for FY 2018 adjusted
20-Nov-2018 / 13:53 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
Intense competition, increased costs and formation of provisions have resulted in the following adjustments to our guidance for 2018:
- A low-single-digit percentage increase in the core volume growth is expected for 2018. In the previous guidance, core volume growth was expected to finish the year with a low- to mid-single-digit percentage increase. In the fourth quarter, a slight core volume growth is expected despite the burden from the low water levels of the Rhine River.
- EBITDA is expected to finish the year slightly below the level of 2017 (EUR 3.44 billion in 2017). The previous guidance projected an EBITDA above last year’s level. This adjustment is primarily due to (1) stronger-than-expected competition, (2) the low water level of the Rhine River, which has resulted in production losses and higher logistics costs, and therefore lower earnings, and (3) provisions for the “Perspective” efficiency program.
- Free operating cash flow (FOCF) is expected to finish the current year slightly below the previous year’s level (EUR 1.84 billion in 2017). The previous forecast projected FOCF of more than EUR 2 billion. The adjustments to the guidance are the result of EBITDA levels below previous expectations, higher-than-expected funds tied up in working capital and higher investments.
- For FY 2018, return on capital employed (ROCE) is expected to be slightly below the level of the previous year (33.4% in 2017). We previously projected that ROCE would be around previous year’s level.
Forward-looking statements
This ad-hoc statement may contain forward-looking statements based on current assumptions and forecasts made by Covestro AG. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Covestro’s public reports which are available at www.covestro.com . The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.
Contact:
Ronald Köhler
Head of Investor Relations
Phone: +49 214 6009 5098
E-mail: [email protected]
Ilia Kürten
Phone: +49 214 6009 7429
E-mail: [email protected]
Cedric Schupp
Phone: +49 214 6009 2336
E-mail: [email protected]
20-Nov-2018 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de
| Language: | English |
| Company: | Covestro AG |
| Kaiser-Wilhelm-Allee 60 | |
| 51373 Leverkusen | |
| Germany | |
| Phone: | +49 (0) 214 60095098 |
| Fax: | +49 (0) 214 60097002 |
| E-mail: | [email protected] |
| Internet: | www.covestro.com |
| ISIN: | DE0006062144 |
| WKN: | 606214 |
| Indices: | DAX |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
| End of Announcement | DGAP News Service |