German maker of high-tech polymer materials Covestro returned to profit in the third quarter compared to the same period of the previous year.
Covestro reported on Tuesday that its third-quarter net income reached €33 million ($35.7 million), compared to the previous year's net loss of €31 million.
Earnings before interest, taxes, depreciation and amortization (EBITDA), a key earnings metric, increased by 3.6% to €287 million from last year's €277 million, within the expected range.
Group sales of around €3.6 billion edged up 1% from the prior year's €3.57 billion amid lower raw material prices that led to lower selling price levels.
In the third quarter, Covestro said it continued to increase its volumes sold, particularly in the Europe, Middle East and Latin America (EMLA) and Asia-Pacific (APAC) regions.
Looking ahead to fiscal 2024, Covestro has narrowed its guidance regarding EBITDA within given ranges, in light of the continued challenging economic environment.
The company now anticipates EBITDA between €1 billion and €1.25 billion, compared to previously expected between €1 billion and €1.4 billion.
Christian Baier, chief financial officer of Covestro, said: "Overall, global demand is intact but remains at a low level.
"We continue to face challenges in various industries and regions.
"Nonetheless, we were able to slightly increase our EBITDA, indicating that our measures for efficiency and plant reliability are working.
"However, the economic environment remains challenging, and we have therefore narrowed our guidance for the full year accordingly."