Covestro trims full-year guidance, says ADNOC deal on track to close in Q4 - Reuters

CompaniesAbu Dhabi National Oil CoCovestro AG Oct 30 (Reuters) - German chemicals maker Covestro (1COVG.DE), opens new tab narrowed its full-year core profit forecast on Thursday due to soft demand, but said its financial stability would be secured as the $17 billion takeover by Abu Dhabi state oil firm ADNOC is set to close in the fourth quarter. Covestro, which 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. Advertisement · Scroll to continueReport Ad The company, whose products include foam chemicals used in mattresses, car seats and insulation for buildings, had said earlier this year that the prospect of higher U.S. 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. Covestro also said on Thursday that a fire at an external substation in Dormagen, Germany would have a negative impact in a low three-digit million euro range for the full year. Its third-quarter EBITDA fell 15.7% to 242 million euros, beating an analysts' average estimate of 183 million euros in a company-provided consensus. Advertisement · Scroll to continue CLOSING OF ADNOC'S TAKEOVER ON TARGET Regulatory approvals for the takeover by ADNOC, currently being examined by the European Commission, are progressing as expected and the deal is on track for closing in the final quarter of the year, the company said. The EU regulator was concerned that ADNOC, in its biggest acquisition yet and one of the largest foreign takeovers of an EU company by a Gulf state, may be using state subsidies to acquire the chemicals company. ($1 = 0.8575 euros) Ad Break Coming Up NEXT StayNext OffEnglish 180p288p360p480p540p576p720pHD1080pHDAuto (180p) About ConnatixV2127676363 About ConnatixV2127676363 Continue watchingafter the adVisit Advertiser websiteGO TO PAGE Reporting by Bartosz Dabrowski in Gdansk, editing by Milla Nissi-Prussak Purchase Licensing Rights Get the key points from this story with Reuters AI