Kunststoffe – Leverkusen – Covestro holds on to annual targets after a difficult quarter – Economy

Leverkusen (dpa) – The plastics specialist Covestro is sticking to its annual targets despite significant losses in the second quarter. The uncertainties about the coronavirus pandemic remained high, however, emphasized the Dax group when presenting the final figures for the second quarter on Thursday in Leverkusen. The forecast range for earnings before interest, taxes, depreciation and amortization (Ebitda) in the current year therefore remains correspondingly high at 0.7 to 1.2 billion euros. After all: after a very difficult April, the company has been feeling gradual improvements since mid-May.

If the current trend continues, sales volumes in July are only likely to be slightly below the previous year’s figure, said Covestro boss Markus Steilemann in an interview with the financial news agency dpa-AFX.

Covestro is suffering from a slump in demand and lower sales prices in the Corona crisis. In addition, the group is suffering from competitive pressure because many competitors have expanded their capacities. Sales in the second quarter fell by around a third year-on-year to 2.16 billion euros. The bottom line was a loss of 52 million euros.

All three divisions of the group were under pressure. The business with preliminary products for rigid and flexible foams, which are used in car seats, chairs or as insulation materials, felt the effects of weak demand from the automotive industry as well as the furniture and wood processing industries. This also applies to the smallest CAS segment for primary products for coatings, adhesive raw materials and special applications.

The car downturn also hit the polycarbonate division, which produces hard plastics for use in cars, for example, but also in the electronics industry and many other sectors. However, somewhat better business with the construction industry provided a certain degree of mitigation. In addition, sales in the electronics and household appliance industries did not come under so much pressure.

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