LANXESS achieves earnings according to forecast in the first quarter of 2023

Free cash flow improved significantly by EUR 264 million year-on-year and amounted to EUR 112 million. This was supported by stable working capital despite a seasonal increase pattern. Net income from continuing operations reached EUR 10 million in the first quarter after EUR 66 million in the previous year. The EBITDA margin pre-exceptionals came to 10.0 percent, against 13.6 percent a year ago.

“As expected, 2023 will be a tough year for the chemical industry and for LANXESS. Our figures for the first quarter make this very clear. It was, therefore, all the more vital that we transfered our high-performance plastics business to a joint venture as planned on April 1. We thus geared our portfolio further toward specialty chemicals and strengthened our balance sheet. This makes us even more resilient in the current difficult waters,” says Matthias Zachert, CEO of LANXESS AG. “However, I expect the economic situation to brighten considerably in the second half of the year, which will also be reflected in our earnings.”

For the coming months, LANXESS anticipates an economically challenging environment still characterized by high levels of uncertainty. The Group, therefore, expects earnings in the second quarter of 2023 to be roughly on par with those of the first quarter. For the second half of the year, LANXESS expects a clear rebound of earnings based on a pick-up of the global economy and, in particular, a positive development of the Chinese market. Against this backdrop, the Group expects EBITDA pre-exceptionals of between EUR 850 million and EUR 950 million for the full financial year 2023.

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