LANXESS, a specialty chemicals company, expects its earnings to grow by 10 to 20 percent in 2024 despite weak first-quarter results due to global economic conditions in the chemical industry. In the first quarter, the company’s EBITDA pre exceptionals was EUR 101 million, down 46.6 percent from EUR 189 million the previous year. The decline was mainly due to lower sales prices and weak demand in many customer industries.
However, compared to the fourth quarter of 2023, there are signs of a slight recovery. Sales increased by 11.9 percent from EUR 1.436 billion to EUR 1.607 billion, and EBITDA pre exceptionals rose by 4.1 percent to EUR 101 million from EUR 97 million in the previous quarter. The Advanced Intermediates and Specialty Additives segments showed strong growth.
CEO Matthias Zachert mentioned that while the chemical industry might have hit its lowest point, it is too soon to declare a full recovery. He expects the positive trend to continue in the second quarter and improved results for the year compared to 2023, although 2024 will still be challenging for the industry.
LANXESS expects a slight increase in demand for the rest of the year, along with better capacity utilization and lower costs due to their FORWARD! action plan. For the full year 2024, the company forecasts a 10 to 20 percent rise in EBITDA pre exceptionals, up from EUR 512 million last year. Growth is expected in the second and third quarters, with slower development in the fourth quarter due to usual seasonal patterns.
The report also highlights the performance of individual segments like Consumer Protection, Specialty Additives, and Advanced Intermediates. All segments saw declines in sales and earnings compared to the previous year, affected by factors such as lower volumes, weaker demand, and lower sales prices.
