BERLIN (dpa-AFX) - Covestro AG (CVVTF.PK, COVTY.PK) raised its forecast for EBITDA, free operating cash flow or FOCF and return on capital employed or ROCE for fiscal year 2021 as a result of a further improved business outlook for the second half-year.
The company now expects fiscal year 2021 EBITDA to be between 2.70 billion euros and 3.10 billion euros compared to the previous forecast of 2.20 billion euros - 2.70 billion euros. The adjustment of the forecast mainly results from a further improved margin outlook for the second half of the year.
The increased EBITDA forecast is based on a preliminary EBITDA for the second-quarter 2021 of around 815 million euros, that meets the current forecast of between 730 million euros and 870 million euros.
Annual 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.
Annual free operating cash flow is expected to be between 1.60 billion euros and 2.00 billion euros compared to the previous forecast of 1.30 billion euros - 1.80 billion euros.
The company now anticipates annual return on capital employed (ROCE) to be between 16% and 20%. The previous forecast projected ROCE between 12% and 17%.
The company will publish its half-year financial report 2021 on August 6, 2021.
Copyright RTT News/dpa-AFX