Zacks Industry Outlook Highlights: Westlake Chemical and Covestro
An upswing in demand in major markets on a global economic rebound should help the Zacks Chemicals Plastics industry to thrive. Westlake (WLK) and Covestro (COVTY) are poised to gain from the favorable industry fundamentals.
German chemicals maker Covestro on Monday raised its 2021 profit forecast for the third time and was confident about prospects for next year, while adding it was not clear if a boost from higher prices would continue. "Overall, we believe that we can conclude a very successful result next year", Chief Financial Officer Thomas Toepfer told Reuters, while adding he couldn't say at this stage whether the lift from higher prices would persist in 2022. Covestro said it now expected 2021 earnings before interest, tax, deprecation and amortisation (EBITDA) of 3.0-3.2 billion euros ($3.5-3.7 billion) compared with 2.7-3.1 billion euros previously.