Lanxess expects stagnation after leap in earnings
After a significant increase in earnings last year, Lanxess is preparing for a headwind. For 2023 the Cologne-based specialty chemicals company expects one adjusted operating profit (Ebitda) on the level of the previous year, as Lanxess announced on Wednesday. Analysts have so far assumed an average of almost 915 million euros.
In 2022, adjusted operating profit rose by a good 14 percent to 930 million euros. Lanxess thus achieved the forecast it made in November, which had envisaged earnings of between 900 and 950 million euros. Thanks to higher prices, sales increased by almost a third to 8.08 billion euros. However, due to sharply increased costs and lower sales, the operating return (Ebitda margin) fell.
“We successfully mastered 2022 and increased our result despite all external adversities. That shows: Lanxess is weatherproof,” said CEO Matthias Zachert. The focus on specialty chemicals and the further strengthening of the presence in North America also ensured stability and growth. The dividend should remain stable at EUR 1.05 per share. Because 2023 will not be any easier for Lanxess, as Zachert said. “The subdued demand, which we already felt clearly in the last quarter of 2022, has continued into the new year so far.”
The high energy prices from the fourth quarter should also be reflected at the beginning of the year. The effects of the war in Ukraine and the development of raw material and energy costs caused uncertainty. For the first quarter, Lanxess expects adjusted earnings of between 180 and 220 million euros. A year ago it was 320 million.