Thanks to continued good demand, Covestro expects much more profits in the coming years. The new group structure and recent acquisition of the DSM should contribute to this. The plastics group announced today that operating profit without any special economic impacts (the so-called Ebitda medium cycle) will reach 2.8 billion euros in 2024. This year Covestro expects 2.2 billion euros.
The company expects to close the third quarter “at maximum expectations or even higher.” For the third quarter, company president Markus Steilmann recently calculated the operating result (Ebitda) at €760-860 million. The company plans to publish quarterly numbers on November 8.
Covestro raised its annual operating profit forecast in July and has since been forecasting EBITDA from 2.7 billion euros to 3.1 billion euros.
She added that the new group structure also offers significant efficiency potential, which Covestro will benefit from by 2023. As already announced, the company is checking all activities and operations around the world to see if they fit in with the vision and strategy. In general, fixed costs will remain at the level of 2020 in 2023.
A company spokesperson recently said that as part of the company’s restructuring, global activities are being scrutinized to see if they fit the strategy and contribute to sustainable growth. “In this context, there will also be personnel adjustments.” Duplicate structures should be eliminated and operations simplified. According to preliminary estimates, there are up to 1,700 jobs worldwide and more than 900 jobs in Germany, which will be eliminated by the end of 2023.
With material from dpa-AFX