Specialty chemicals company LANXESS recorded a notable rise in earnings during the third quarter of 2024. EBITDA pre exceptionals climbed to EUR 173 million, representing a 45.4% increase from EUR 119 million in the same quarter last year. This growth was driven by higher volumes, improved capacity utilization, and cost savings through the company’s “FORWARD!” action plan.
“Despite ongoing challenges in the global chemical industry, we have stayed the course. Our proactive measures to address weak demand globally are yielding results. Higher capacity utilization and cost improvements through our ‘FORWARD!’ program are clearly reflected in our performance. We remain confident in our full-year guidance, even as a widespread recovery remains elusive,” said Matthias Zachert, Chairman of the Board of Management at LANXESS AG.
Group sales for the quarter were nearly stable at EUR 1.598 billion, compared to EUR 1.601 billion in the previous year. Volume increases across most business units offset declines in selling prices, which were influenced by lower raw material and energy costs.
The EBITDA margin pre exceptionals improved to 10.8% from 7.4% a year earlier. Net income for the quarter reached EUR 1 million, generated entirely from continuing operations, contrasting with a net loss of EUR 131 million in the prior year. LANXESS reaffirmed its 2024 fiscal year guidance, anticipating earnings growth of 10–20% over the previous year’s EUR 512 million. However, the company foresees subdued performance in Q4 due to typical seasonal patterns.
In early October, LANXESS announced the sale of its Urethane Systems business to Japan’s UBE Corporation for a valuation of EUR 460 million. LANXESS expects proceeds of around EUR 500 million. “This sale marks a major strategic milestone,” said Zachert. “By divesting our final polymer business, we have successfully transitioned into a specialty chemicals company.” Proceeds from the transaction will be used to reduce debt. The deal is subject to regulatory approvals and is expected to close in the first half of 2025.
The Consumer Protection segment experienced a sales decline of 10.3%, amounting to EUR 521 million, primarily due to reduced demand from agrochemical customers. EBITDA pre exceptionals decreased by 15.5% to EUR 71 million, resulting in a margin of 13.6%.
Despite these challenges, the segment witnessed steady performance in business from other industries, showcasing its resilience amidst a fluctuating market environment. Sales in the Specialty Additives segment remained stable at EUR 550 million. However, the segment achieved a remarkable 84.8% increase in EBITDA pre exceptionals, reaching EUR 61 million. This significant improvement was attributed to higher capacity utilization and successful cost-saving measures.
Consequently, the EBITDA margin rose substantially to 11.1%, compared to 6.0% in the previous period, highlighting the segment’s operational efficiency. The Advanced Intermediates segment posted a robust performance, with sales increasing by 12.9% to EUR 455 million. EBITDA pre exceptionals more than doubled, surging by 126.7% to EUR 68 million, fueled by enhanced capacity utilization and cost efficiencies. The segment’s EBITDA margin improved notably, climbing to 14.9% from 7.4%, reflecting its strong profitability and strategic focus on optimizing operations.
LANXESS continues to focus on driving operational efficiency and strategic growth as part of its transformation into a leading specialty chemicals provider. LANXESS, a global specialty chemicals leader with 2023 sales of EUR 6.7 billion and operations in 32 countries, is renowned for its expertise in intermediates, additives, and consumer protection products, as well as its strong sustainability performance, reflected in top ESG ratings. LANXESS is a leading global specialty chemicals company renowned for its innovative solutions and commitment to sustainability.
Headquartered in Cologne, Germany, the company operates in 32 countries with approximately 12,400 employees. With 2023 sales totaling EUR 6.7 billion, LANXESS specializes in the development, manufacturing, and marketing of chemical intermediates, additives, and consumer protection products.
The company’s diverse portfolio serves industries such as automotive, agriculture, construction, and electronics, delivering high-performance solutions that enhance efficiency and environmental sustainability. LANXESS has consistently demonstrated leadership in sustainability, achieving top positions in the Dow Jones Sustainability Index and ESG ratings by MSCI and ISS, underscoring its dedication to responsible business practices and innovative growth.
