LANXESS expects EBITDA for the year to be between EUR 820-880 mnNovember 11, 2020
Mumbai, Maharashtra [India]: November 11, 2020 – The German speciality chemicals major LANXESS AG says that despite the impact of the global coronavirus crisis, it remains on course. Following the third quarter, the company is confirming and continues to look at positive guidance for 2020 and expects EBITDA pre exceptionals for the full year between Euro 820 million and Euro 880 million.
“We are continuing on course in the troubled waters of the coronavirus crisis and have specified our 2020 guidance. We want to deliver what we announced in spring. Given these volatile times and the many uncertainties, this is a great achievement of the entire LANXESS team and I am very proud of this,” said Matthias Zachert, Chairman of the Board of Management at LANXESS AG.
LANXESS will be paying a special bonus for the extraordinary commitment of its employees during the coronavirus pandemic. “In particular, our colleagues at the plants played a crucial role in keeping our business running during the crisis,” said Zachert. “With this bonus, we would like to thank them and all the others who have made special contributions over the past months.” In total, LANXESS will distribute a high single-digit million euro amount. The amount of the payment varies from employee to employee. In Germany, the special bonus will be paid out in December. Different rules apply in other countries.
The coronavirus crisis continued to affect business figures in the third quarter. At 193 million euro, EBITDA pre exceptionals was 28.3% which was lower than the previous year’s figure of 269 million euro. The EBITDA margin pre exceptionals stood at a steady 13.2%, compared to 15.8% in the prior quarter. In addition to the pandemic, a planned major maintenance shutdown in Belgium, effects from reduced selling prices and adverse exchange rate effects, particularly relating to the U.S. dollar, affected the result. By contrast, business in the Consumer Protection segment continued to develop well and there were also positive signals from the markets compared with the previous quarter.
Mr. Zachert noted, “In many businesses, we are seeing indications that things are taking a turn for the better. Demand in key customer industries, including the automotive sector, picked up again in comparison to the second quarter. China and the U.S., in particular, are providing positive stimuli,” said Zachert.
Group sales amounted to EUR 1.461 billion, compared to the previous year’s figure of EUR 1.704 billion. Net income from continuing operations showed a temporary dip from EUR 79 million to EUR 25 million.
Demand in the Advanced Intermediates segment stabilized in both business units compared with the second quarter, so that sales volumes almost reached the previous year’s level. However, given lower selling prices and negative exchange rate effects, sales and earnings were muted over the previous year. Sales plateaued dipping by 14.4 per cent from EUR 549 million to EUR 470 million. At EUR 65 million, EBITDA pre exceptionals was 28.6 per cent lower than the prior year’s figure of EUR 91 million. The EBITDA margin pre exceptionals was 13.8 per cent, against 16.6 per cent in the prior year.