Covestro lowers full-year outlook amid weak demand and oversupply
German chemicals maker Covestro has narrowed its full-year profit forecast, citing persistently weak demand and oversupply in major markets.
The company now expects annual EBITDA between €700 million and €800 million ($816–933 million), down from its previous guidance of up to €1.1 billion, News.Az reports, citing Reuters.
Covestro — which produces foam chemicals for mattresses, car seats, and building insulation — said higher U.S. tariffs had led to product oversupply, especially from the Asia-Pacific region, driving down prices.
It also warned that a fire at a substation in Dormagen, Germany, would negatively affect annual earnings by a low three-digit million-euro amount.
Despite the challenges, Covestro’s third-quarter EBITDA fell 15.7% to €242 million, still beating analyst expectations of €183 million.
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