The ‘FORWARD!’ action plan, which LANXESS is using to counteract weak demand in the chemical industry, is making an impact: In the second quarter of 2024, EBITDA pre exceptionals rose significantly by 69.2 percent, reaching € 181 million compared to € 107 million in the same period of the previous year. The main factors driving this earnings increase were a significantly improved cost base and better utilization of production plants. The company is thus confirming the preliminary figures for the second quarter published on July 17, 2024.

“Our fast and consistent action is now paying off. With our FORWARD! action plan, we have considerably reduced our costs and significantly improved our earnings – despite a continued weak market environment. Although we are seeing some individual markets pick up slightly, there is still no sign of a broad-based recovery,” says Matthias Zachert, CEO of LANXESS AG.

Sales amounted to € 1.678 billion in the second quarter, 5.6 percent lower than the previous year’s figure of € 1.778 billion. This was primarily due to lower selling prices, as the Group passed on reduced raw material and energy costs.

LANXESS is confirming its forecast for the current fiscal year 2024 and continues to anticipate an increase in earnings of 10 to 20 percent compared to the previous year’s figure of € 512 million EBITDA pre exceptionals. For the third quarter of 2024, LANXESS expects EBITDA pre exceptionals to be close to or up to the level of the second quarter. For the fourth quarter, the Group then anticipates a more muted performance as a result of the normal seasonal development. 

The EBITDA margin pre exceptionals for the second quarter amounted to 10.8 percent compared to 6.0 percent in the same period of the previous year. The net income amounted to minus € 16 million and was attributable entirely to continuing operations. In the same period of the previous year, there had been a net income from continuing operations of minus € 145 million.

LANXESS continued to focus on reducing debt and increasing cash flow in the second quarter. Free cash flow improved from EUR 0 million in the same quarter of the previous year to € 83 million. On this basis, the company was able to reduce net debt by 11 percent to € 2.547 billion as at June 30, 2024 compared to € 2.863 billion at the same time last year.