Lanxess cuts profit expectations and intends to reduce dividend
The specialty chemicals group Lanxess is being hit even harder by the industry downturn than before. Due to weaker demand, management is now only targeting earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR 500 million to EUR 550 million in the fourth quarter, as Lanxess announced in Cologne on Monday. Previously, the Board of Management had forecast between 600 million and 650 million euros.
In addition to weak demand, an incipient destocking by customers in the agricultural industry and a supplier-related reduction in production had an additional negative impact, it said.
Lanxess intends to reduce the dividend for the current year from EUR 1.05 to EUR 0.10 per share in order to make progress in reducing debt despite the weak business.
Lanxess's financial struggles in the chemical industry have led to a revision in their dividend expectations. Despite weaker demand and other challenges, the company is deliberating on reducing the dividend to EUR 0.10 per share, aiming to decrease debt, as mentioned in the financial update.
The ongoing industry downturn and challenges such as weaker demand and destocking by customers in the agricultural sector have significantly impacted Lanxess's Chemistry division, contributing to the need for profit adjustments and a reduced dividend.
Source: www.dpa.com
