This content is not available in your region

Germany's Lanxess raises 2021 profit outlook on demand recovery

Germany's Lanxess raises 2021 profit outlook on demand recovery
Germany's Lanxess raises 2021 profit outlook on demand recovery   -   Copyright  Thomson Reuters 2021
By Reuters

– German speciality chemicals maker Lanxess raised its 2021 core profit outlook on Wednesday — the second time this year — driven by a rebound in the auto industry’s demand and continued strong performance of its disinfectants business.

The Cologne-based group now sees 2021 adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in the range of 1 billion euros to 1.05 billion euros ($1.17 billion-$1.23 billion), compared with a previous forecast of 950 million to 1 billion euros.

Lanxess, which generates a fifth of its sales from the auto industry, said it managed to largely pass on the sharp rise in raw-material prices in all segments by adjusting selling prices.

“Volumes are back to pre-pandemic levels and we are confident about the second half of the year,” Chief Executive Officer Matthias Zachert said in a statement.

The company also said the outlook reflects the acquisition of U.S.-based rival Emerald Kalama Chemical — completed in early August — as it expects EBITDA contribution of around 35 million euros for the remainder of 2021.

Its quarterly EBITDA excluding one-offs increased 23.7% to 277 million euros, above analysts’ average estimate of 267 million euros in a company-provided poll.

($1=0.8535 euros)