Buying mood overseas: Lanxess raises forecasts

The German specialty chemicals group Lanxess has significantly revised its profit expectations for the fourth quarter upwards. Thanks to advance purchases by U.S. customers, the Cologne-based company anticipates earnings before interest, taxes, depreciation, and amortization (EBITDA) of around 159 million euros. This surpasses the forecasts of market analysts, who had expected 130 million euros according to the Vara consensus, by over 20 percent. Lanxess is also optimistic about the coming year 2024. The EBITDA, adjusted for special effects, is estimated at around 614 million euros, which is at the upper end of the growth range of 10 to 20 percent. These figures indicate that December was particularly strong, even though the general macroeconomic environment has remained stable. Sebastian Bray, an analyst at Berenberg, points out that this could be a positive sign for German chemical manufacturers, who benefited from robust volumes in the fourth quarter. However, the sustainability of this trend into the year 2025 remains to be seen, as Lanxess has particularly highlighted the U.S. advance purchases as a driver for its specialty additives and consumer protection products divisions. Analysts at Jefferies expect a positive reaction from investors, which was already reflected in the stock market: Lanxess shares rose by 5.6 percent in afternoon trading. Lanxess will present the complete company figures for the fiscal year 2024 on March 20.