German plastics producer Covestro (Leverkusen; www.covestro.com) has raised its forecast for 2020 EBITDA on the back of better-than-expected fourth-quarter business development in polyurethanes and polycarbonates.

The company now expects EBITDA of EUR 1.44 bn to EUR 1.50 bn, which compares with the previous outlook of around EUR 1.20 bn and the EUR 1.6 bn reported in 2019 (see Plasteurope.com of 21.02.2020). Covestro noted that the consensus figure of estimates from analysts was EUR 1.199 bn.

The company also raised its outlook for 2020 free-operating cash flow to EUR 400m-EUR 550m following the previous guidance of between EUR 0 and EUR 300m. The consensus figure is EUR 309m. The company is still pencilling-in the core volume growth at below the 2% rate recorded last year, but has projected the decline at between 5% and 6%.

Capital market expectations are based on the average values of latest consensus estimates of financial analysts who participated in a survey by Vara Research (Frankfurt / Germany; www.vararesearch.de) on November 16, 2020. Covestro did not make a comment on the consensus figures for group and segment sales. The average of estimates for 2020 sales is EUR 10.4 bn, down from EUR 12.4 bn reported in 2019.