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.