(Reuters) -German chemicals maker Covestro narrowed its full-year core profit forecast on Thursday, citing persistently weak demand and the resulting oversupply in its key markets.
The company, who had already cut its outlook twice this year, now sees its yearly earnings before interest, taxes, depreciation and amortization between 700 million and 800 million euros ($816 million and $933 million).
Its previous forecast was for the EBITDA to come in a range of 700 million to 1.1 billion euros.
Covestro, whose products include foam chemicals used in mattresses, car seats and insulation for buildings, had said earlier this year that the prospect of U.S. higher tariffs was leading to a huge oversupply of products to the market there, particularly from the Asia-Pacific region, which had then caused a big drop in prices.
The group also said a fire at an external substation at its plant in Dormagen, Germany would have a negative impact in a low three-digit million euro range for the full year.
Covestro’s third-quarter EBITDA fell 15.7% to 242 million euros, beating an analysts’ average estimate of 183 million euros in a company-provided consensus.
($1 = 0.8575 euros)
(Reporting by Bartosz Dabrowski in Gdansk, editing by Milla Nissi-Prussak)
