LANXESS: Results for Q2 and FY 2023 estimated below market expectations
Specialty chemicals company LANXESS expects second quarter 2023 EBITDA pre exceptionals to remain below average market expectations. Therefore, the company adjusts the outlook for FY 2023 downward as well.
EBITDA pre exceptionals for the second quarter 2023 is expected to amount to around EUR 100 million which is below current average market expectations.
Generally very weak demand combined with continued customer de-stocking effects already seen in the first quarter lasted into the second quarter and are ongoing. Especially demand weakness in the construction industry, electro/electronics and even from usually stable consumer related products, burden utilization and earnings. A recovery within the month of June is not visible.
LANXESS had formerly expected Q2 2023 EBITDA pre exceptionals roughly on par with Q1 results and a FY 2023 EBITDA pre exceptionals between EUR 850-950 million.
LANXESS now expects the weakness to continue in the second half of 2023. Hence, the company also adjusts its full-year expectations. Should trading not pick up, LANXESS now expects a profitability level of EUR 600 to 650 million EBITDA pre exceptionals for FY 2023.
“The demand recovery we originally expected in the second half is not yet visible – neither in China nor in other meaningful end markets. This impacts us especially in Germany: Here we are massively impacted by the disadvantageous conditions such as the high energy prices and massive bureaucracy. In times of weak demand Germany as an industrial location is just not competitive”, said Matthias Zachert, CEO of LANXESS.
LANXESS will release its results for the second quarter 2023 on August 4, 2023.
Forward-Looking Statements
This company release contains certain forward-looking statements, including assumptions, opinions, expectations and views of the company or cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial position, development or performance of LANXESS AG to differ materially from the estimations expressed or implied herein. LANXESS AG does not guarantee that the assumptions underlying such forward-looking statements are free from errors, nor does it accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecast developments. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, any information, estimates, targets and opinions contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and accordingly, no representative of LANXESS AG or any of its affiliated companies or any of such person's officers, directors or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.
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