LEVERKUSEN (dpa-AFX) - Plastics group Covestro is confident of a concrete outlook for 2023 after a better-than-feared start to the year. Earnings before interest, taxes, depreciation and amortization are expected to reach 1.1 billion to 1.6 billion euros, the DAX-listed group said Friday as it presented final figures for the opening quarter. The operating free cash flow - i.e. the money that ultimately sticks or flows out of Covestro in its day-to-day business - should therefore come out at between zero and half a billion euros. Previously, Group CEO Markus Steilemann had forecast significant declines for both figures compared with the 2022 figures of €1.62 billion in operating profit and €138 million in cash flow due to the uncertain economic environment.

As has been known since mid-April, operating profit in the first quarter slumped by almost two-thirds year-on-year to 286 million euros, with sales down by one-fifth to 3.74 billion euros. However, the company held up better on the profit side than analysts had previously feared. Covestro explained this primarily with cost reductions. In the second quarter of the year, the company is now expected to achieve an operating profit of 330 to 430 million euros, which is more than industry experts currently expect.

The bottom line was a loss of 26 million euros from January to the end of March, compared with a surplus of 416 million euros a year ago. Operating free cash flow was also negative at minus 139 million euros./mis/stk