Chief Financial Officer Thomas Toepfer informed Reuters the lockdown in Shanghai, which led the corporate to chop its full-year earnings outlook on Monday, would have larger and longer results on the group than initially thought.
Toepfer stated Covestro’s power prices might greater than double this yr to between 1.7 billion and a pair of.0 billion euros ($1.8-$2.1 billion), towards its earlier 1.5 billion euro estimate. The group’s power prices already elevated by 67% in 2021.
“The logistics problems and the problems of the other suppliers have worsened so much that ultimately sales drop quite sharply,” Toepfer added on the second-quarter efficiency.
Soaring power costs within the wake of Russia’s invasion of Ukraine have dealt a painful blow to the chemical compounds business, which is among the many extra energy-intense sectors, whereas lockdowns in China have thrown world provide chains into disarray.
In 2021, China accounted for round 22% of Covestro’s gross sales.
Covestro shares fell 6.3% to 38.75 euros at 0815 GMT, their lowest stage since August 2020.
($1 = 0.9527 euros)
(Reporting by Bartosz Dabrowski in Gdansk, extra reporting by Linda Pasquini; enhancing by Milla Nissi)