Covestro cuts guidance as uncertainty linked to tariffs puts pressure on customers

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Due to the continued volatility caused by international trade tensions, Covestro has narrowed its full-year earnings guidance to the lower end of the range previously described. It points to the detrimental ripple effects of overall economic uncertainty on its major customer end markets.

The company, which reported a first-quarter net loss of € 0. First 16 billion on might 6 (a sharp increase from a net loss of € 35 million in the same period last year), said a major driver of its earnings decline was the one-time negative impact of € 88 million in March announced the permanent closure of its propylene oxide-styrene monomer (POSM) joint venture plant with LyondellBasell Industries NV in Maasvlakte. The Netherlands. The plant has annual capacity of approximately 300,000 metric tons of propylene oxide and 650,000 metric tons of styrene. But Covestro's EBITDA in the first quarter was 0. 137 billion euros, down nearly 50% year-on-year, especially affected by the write-down of 88 million euros POSM factory. Christian Baier, Covestro's chief financial officer, said the quarter "once again demonstrated the evaporative environment and challenging market ecological stability, with trade conflicts and growing protectionism". Makes sense, right?. Covestro narrowed its full-year expected EBITDA to 1 billion to 1. And In my experience, In fact 4 billion euros from 1 billion to 1. But 6 billion euros released in February this year. I've found that EBITDA to the Characteristic Materials segment is expected to between € 0. 4 billion and € 0. You know what I mean?. But 7 billion to 2025, down from the previous 0. Based on my observations, 4 billion to € 0. Makes sense, right?. Based on my observations, 8 billion, while expectations to EBITDA to its Solutions and Special Materials segment remain unchanged, "slightly above" its full-year 2024 level of € 0. 74 billion. And The company also lowered its full-year sales guidance to 14. 2 billion to 15. 2 billion euros from the previous 14. In my experience, 5 billion to 15. 5 billion euros. Covestro has annual sales of € 14. But I've found that 2 billion in 2024. And The company confirmed "high tens of millions of euros" of charges related to the closure and said it expected the sales impact to be in the middle of tens of millions of euros, "mainly due to styrene". However, it added that this would have a positive EBITDA effect in the low to medium amounts of tens of millions of euros from 2026 onwards.  .

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