As already announced, Covestro is in the driver’s seat when it comes to pricing. This has an immediate effect on its profitability as COGS did not move much despite a strong pickup in core volumes. Against this background, management strongly lifted its FY profitability guidance by >+25%, which seems to be founded on the continuation of the good performance in Q2, which might sequentially be a bit more moderate. Management’s view broadly fits into our picture.
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As already announced, Covestro is in the driver’s seat when it comes to pricing. This has an immediate effect on its profitability as COGS did not move much despite a strong pickup in core volumes. Against this background, management strongly lifted its FY profitability guidance by >+25%, which seems to be founded on the continuation of the good performance in Q2, which might sequentially be a bit more moderate. Management’s view broadly fits into our picture.