Covestro is raising its forecast for EBITDA, free operating cash flow (FOCF) and return on capital employed (ROCE) for fiscal year 2021 as a result of a better than previously expected business development. The new expectation exceeds the previously provided forecast as well as current capital market expectations. 

Covestro adjusts its forecast for fiscal year 2021 as follows:

● EBITDA is expected to be between Euro 2 200 million and EUR 2 700 million. The previous forecast projected EBITDA between EUR 1 700 million and EUR 2 200 million. The adjustment of the forecast mainly results from a better than expected margin development in the first half of the year. The consensus expects this figure to be Euro 2 206 million.

● Core volume growth is expected – unchanged – to be between 10% and 15%, of which around 6 percentage points are attributable to the acquisition of the Resins & Functional Materials (RFM) business.

● Free operating cash flow (FOCF) is expected to be between Euro 1 300 million and Euro 1 800 million. The previous forecast projected FOCF between Euro 900 million and Euro 1 400 million. The adjustment of the forecast mainly results from the increased forecast for EBITDA. The consensus expects this figure to be Euro 1 037 million.

● Return on capital employed (ROCE) is expected to be between 12% and 17%. The previous forecast projected ROCE between 7% and 12%. The adjustment of the forecast mainly results from the increased forecast for EBITDA.

The increased EBITDA forecast is based on a preliminary EBITDA for Q1 2021 of Euro 743 million and an expected EBITDA for Q2 2021 between Euro 730 million and Euro 870 million.

The outlook factors in the acquisition of the Resins & Functional Materials (RFM) business of Koninklijke DSM N.V., Heerlen (Netherlands), which was closed on April 1, 2021, and the integration into the Coatings, Adhesives, Specialties segment. One-time costs that could arise in conjunction with the transformation program “LEAP” have not been considered.