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UPDATE 1-Covestro reports Q3 profit beat, raises guidance

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Oct 9 (Reuters) - German chemicals maker Covestro raised its full-year guidance as it reported a better-than-expected quarterly core profit on Friday, citing cost-cutting measures, improved volume growth and better margin development.

Earlier this year, the company had managed an unexpectedly swift rebound from a coronavirus-related slump and finance chief Thomas Toepfer said the trend would continue into the fourth quarter.

While Covestro’s preliminary sales came in slightly below consensus, the company said it expects full-year earnings before interest, taxes, depreciation and amortisation (EBITDA) of around 1.2 billion euros, the top of its previous guidance range and 20% above analyst consensus.

The improved EBITDA should lift Covestro’s free cash flow and return on capital, the company added.

The maker of chemicals for heat insulation foams and transparent polycarbonate plastics said its preliminary third-quarter EBITDA rose 7% to 456 million euros, topping the 373 million expected on average by analysts in a Vara Research consensus. (Reporting by Zuzanna Szymanska in Gdansk; editing by Jason Neely, Kirsten Donovan)

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