Shares of Lanxess AG (LNXSF.PK) were losing around 12 percent in German trading after the specialty chemicals company reported Thursday a loss in its third quarter compared to prior year's profit, with weak revenues.
Further, the firm now expects fiscal 2025 outlook at lower end of the range, and also announced further cost reductions of around 100 million euros.
The company is now launching further measures with a savings potential of around 100 million euros. The details will be specified in the first quarter of 2026.
In August of this year, LANXESS announced additional optimizations in its production network, which are expected to generate permanent annual savings of around 50 million euros by the end of 2027.
For fiscal 2025, the company specified its outlook, and now expects EBITDA pre exceptionals to be around the lower end of the previously given range of 520 million euros to 580 million euros.
Matthias Zachert, CEO, said, "The ongoing weakness in global demand continues to impact the entire chemical industry, including us. The situation is particularly dramatic in our target industries of construction, automotive and agrochemicals. We currently see no light at the end of the tunnel and expect this situation to continue well into next year.'
In the third quarter, the company reported net loss of 77 million euros, compared to prior year's net loss of 1 million euros.
EBITDA pre exceptionals fell 27.7 percent to 125 million euros from 173 million euros a year earlier. EBITDA margin pre exceptionals was 9.3 percent, lower than 10.8 percent a year ago.
The company attributed the decline primarily to to generally weak demand, which led to lower sales volumes, along with the sale of the Urethane Systems business unit on April 1, 2025, and adverse currency effects.
Sales amounted to 1.338 billion euros, down 16.3 percent from 1.598 billion euros in the previous year.
The continuing weak economic environment and massive geopolitical uncertainties impacted the results, it said.
On the XETRA in Germany, the shares were trading at 17.07 euros, down 12.2 percent.
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