Gross sales down 26.7 % to EUR 1.601 billion within the third quarter of 2023
EBITDA pre exceptionals down 50.4 % year-on-year at EUR 119 million
Mumbai (Maharashtra) [India], November 21: Within the third quarter of 2023, LANXESS’ enterprise figures had been once more influenced by the persistently weak economic system. Gross sales amounted to EUR 1.601 billion, down 26.7 % on the earlier 12 months’s determine of EUR 2.185 million. EBITDA pre exceptionals fell by 50.4 % from EUR 240 million to EUR 119 million.
The primary causes for this growth had been the low demand from practically all industries and prospects’ ongoing albeit diminishing stock discount. The related discount in gross sales volumes and excessive idle prices led to declining earnings, particularly within the Specialty Components and Superior Intermediates segments. The Shopper Safety section noticed solely a relatively reasonable earnings decline
The Group’s EBITDA margin pre exceptionals was 7.4 %, towards 11.0 % within the prior-year quarter. Web earnings declined to minus EUR 131 million within the third quarter in contrast with EUR 80 million within the prior-year quarter.
“The weak demand within the world chemical compounds trade persists, and we see no indicators of restoration for the remainder of the 12 months. Quite the opposite, demand within the fourth quarter so far appears to be even weaker than anticipated,” stated Matthias Zachert, Chairman of the Board of Administration at LANXESS AG.
LANXESS had already introduced the unexpectedly weak begin to the fourth quarter on November 6. Initiated destocking of shoppers within the agroindustry and a supplier-related manufacturing limitation for the Enterprise Unit Flavors & Fragrances at its manufacturing web site in Botlek (NL) impression outcomes moreover. LANXESS due to this fact expects EBITDA pre exceptionals for the complete 12 months 2023 to be between EUR 500 and 550 million. LANXESS’ earlier steering was EUR 600 to 650 million for EBITDA pre exceptionals for the whole 12 months.
Given the weak enterprise growth, the Board of Administration intends to suggest a discount of the complete 12 months 2023 dividend to EUR 0.10. The hereby prevented money outflow would lead to an additional discount of internet monetary debt. Anticipated proceeds from the now initiated sale of the Enterprise Unit Urethane Techniques would contribute as effectively.
Within the third quarter, LANXESS lowered its internet monetary liabilities by an additional 11 % from EUR 2.863 billion as of June 30, 2023 to EUR 2.557 billion. The decline was primarily the results of a constant discount in internet working capital. In comparison with EUR 3.814 billion on the steadiness sheet date of December 31, 2022, internet monetary liabilities fell by 33 %.
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