Lanxess expects 2024 core profit to improve, flags challenging first half

Credit: REUTERS/Wolfgang Rattay

Adds details on results in paragraph 2, CEO quote in paragraph 3 and outlook in 4

March 14 (Reuters) - German speciality chemicals maker Lanxess LXSG.DE on Thursday forecast its earnings to improve in 2024, but flagged further challenges in the first half of the year after reporting a sharp drop in 2023 profit due to weak demand and high idle costs.

Lanxess expects earnings before interest, taxes, depreciation and amortisation (EBITDA) pre-exceptionals to be "moderately higher", compared with a 44.9% drop to 512 million euros ($560.03 million) in 2023. Analysts in a company-provided poll are expecting EBITDA pre-exceptionals to come in at 630.3 million euros in 2024.

"However, earnings will still be significantly below the average level of previous years," Chief Executive Officer Matthias Zachert said in a statement.

The company foresees no improvement in the first quarter of the current year, compared with the last quarter of 2023, and expects EBITDA pre-exceptionals of up to 100 million euros in the period after 189 million in the same quarter of last year.

($1 = 0.9142 euros)

(Reporting by Linda Pasquini and Ozan Ergenay; Editing by Jacqueline Wong and Sherry Jacob-Phillips)

((linda.pasquini@thomsonreuters.com; ozan.ergenay@thomsonreuters.com))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.