The German concern of special chemistry LANXESS reduced sales of marketable products by 2% in the first quarter. Net profit decreased by almost 30%, follows from the financial statements. In the first three months of the year LANXESS sold 1.7 billion Euro. EBITDA down 9.9% to 245 million Euro. EBITDA margin net of individual items was 14.4% compared to 15.7% a year earlier. “So far, we have been able to contain the economic consequences of the coronavirus pandemic within certain limits, mainly due to our balanced portfolio.
We know that we have not reached the peak of the crisis. Nevertheless, we feel well prepared — we hold strong positions and take a whole range of measures to overcome the crisis. Most importantly, our employees are healthy, and our plants continue to work, » said the chairman of the MatthiasZahert board. The largest plants of the concern continue to operate continuously. Only factories in China, Italy, India and Argentina were temporarily closed, and in some cases due to government requirements. The group’s net profit fell by 27.6% over the quarter from 87 to 63 million Euro.
LANXESS Guide expects effect of coronavirus pandemic will increase in the second and third quarters. The concern predicts that EBITDA excluding special items in the second quarter will be from 200 to 250 million Euro. In 2020, EBITDA will be in the range of 800–900 million Euro. According to the previous forecast, LANXESS expected annual revenue to be between 900 million Euro up to 1 billion Euro. EBITDA net of special items last year was 1.019 billion Euro. In april LANXESS announced that it will indefinitely suspend its stock repurchase program.
The company will also save between 50 and 100 million Euro by cutting costs in fiscal 2020 and will reduce its investment budget by about 50 million euros, postponing the implementation of a number of projects.