LEVERKUSEN (dpa-AFX) - The plastics group Covestro is taking a more cautious view of the year as a whole in a persistently difficult business environment. The global economy continues to lack momentum and the automotive industry, which is important for Covestro, has recently shown signs of weakness. According to a statement on Tuesday, Group CEO Markus Steilemann now expects earnings before interest, taxes, depreciation and amortization (EBITDA) of between EUR 1 and 1.4 billion for 2024 - after just under EUR 1.1 billion in the previous year. Previously, up to 1.6 billion euros had been targeted. However, the average analyst estimate was already in the lower half of the old range.

The free operating cash flow is now expected to be between minus 100 and plus 100 million euros - after previously 0 to 300 million euros. In the second quarter just ended, Covestro's sales remained more or less stable at EUR 3.7 billion, while operating profit fell by 17 percent year-on-year to EUR 320 million. The bottom line for the months of April to June was in the red. For the third quarter, the Leverkusen-based DAX-listed company expects an operating profit of between 250 and 350 million euros.

There was initially no news on the ongoing takeover talks with the oil company Adnoc./mis/zb