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Investing.com -- Lanxess (ETR:LXSG) on Thursday cut its full-year profit outlook, citing weak demand and warning of no recovery in the economic environment for the rest of the year.
The speciality chemicals maker now expects adjusted EBITDA of €528 million to €580 million in 2025, down from its previous forecast of €600 million to €650 million. Analysts in a company poll had expected €572 million.
“The economic environment has deteriorated significantly again in recent months,” CEO Matthias Zacher said. “Additionally, ongoing tariff discussions with the U.S. are causing considerable market uncertainty and exacerbating the situation for the European chemical industry.”
He added there is “currently no improvement in sight for the economic situation.”
Third-quarter EBITDA is projected to be sequentially lower than the second quarter’s figure of under €150 million, compared with the consensus of €154 million, including about €10 million in force majeure costs from a chlorine supplier.
In the second quarter, Lanxess posted adjusted EBITDA of €150 million, slightly above the consensus of €148 million, with margins down 60 basis points year-on-year.
Group sales came in at €1.466 billion, 7% below expectations of €1.586 billion, falling 6% organically on a 3.7% drop in volumes and 2.3% decline in prices. According to Jefferies analysts, portfolio effects weighed by 4% and currency by 2.6%.