July 9, 2020 / 10:29 AM / a month ago

Covestro flags stronger than expected performance in second-quarter

(Reuters) - German chemicals group Covestro (1COV.DE) on Thursday said it expected its second quarter results, due to be published on July 23, would come in above market expectations.

The global coronavirus crisis had hurt Covestro’s first-quarter numbers and 2020 outlook as key customers from the automotive and electronics industries had to shut down factories because of the pandemic.

The company said “during preparations for its half-year financial report, preliminary Q2 key financial data deviated from capital market expectations, based on the average values of latest consensus estimates of financial analysts, published by Vara Research on July 8, 2020.”

Covestro did not give reasons for this.

The company’s shares were up 4.5% by 1120 GMT.

Analysts in the consensus published by Vara Research expected the company to recover gradually after making a loss for two consecutive quarters, but their estimate for the period ending on June 30 had included a much wider loss.

The former Bayer subsidiary said its preliminary net loss came in at around 60 million euros ($67.95 million) versus a loss of 107 million expected on average by analysts in the Vara Research consensus.

Covestro said preliminary earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to 124 million euros in the second quarter versus consensus forecasts for EBITDA of 80 million euros.

Reporting by Zuzanna Szymanska in Gdansk; editing by Jason Neely and Jane Merriman

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