Covestro cuts 2020 guidance on coronavirus impact

BERLIN (Reuters) - German chemicals maker Covestro <1COV.DE> on Wednesday withdrew its 2020 forecast due to the negative impact of the new coronavirus on business and core volume growth in the first quarter.

It now expects earnings before interest, taxes, depreciation, and amortization (EBITDA) to be in the range of between 0.7 billion and 1.2 billion euros ($0.76 billion - $1.30 billion), down from previously forecast 1 to 1.5 billion euros.

The maker of chemicals for heat insulation foams and transparent polycarbonate plastics reported preliminary first-quarter EBITDA of 254 million euros and said it was increasing its 2020 short-term cost savings target to more than 300 million euros.

It said its forecast assumed business would recover starting in the third quarter, warning that further guidance updates may be necessary as the pandemic is still evolving.

(Reporting by Riham Alkousaa, editing by Emma Thomasson)