Another international giant announced the sale of its polyurethane business!

Demand for specialty chemicals at LANXESS is expected to be lower than expected in the fourth quarter.

Customers in the agricultural industry began to destock, as well as supplier-related production restrictions in the Flavors and Fragrances business unit at the Botlek production site in the Netherlands, which also had an additional impact on performance.

Lanxess currently expects earnings before interest, taxes, depreciation and amortization (EBITDA) for fiscal 2023 to be between 500 million and 550 million euros. The adjusted forecast is lower than the current market expectations of 571 million euros. Lanxess had previously expected earnings before interest, taxes, depreciation and amortization (EBITDA) in fiscal 2023 to be 600 million to 650 million euros.

In view of the weak business development, the Management Board intends to propose a reduction in the dividend for the 2023 financial year to 0.10 euros. The resulting avoided cash outflows will further reduce net financial debt. Expected proceeds from the sale of the currently launched Polyurethane Systems business unit will also contribute.

As LANXESS's only remaining polymers business, the business unit no longer aligns with the strategic direction of the Group, which has systematically adjusted its business portfolioin recent years. The business unit has six production sites worldwide and approximately 400 employees.

LANXESS's earnings before interest, taxes, depreciation and amortization (EBITDA) in the third quarter of 2023 are expected to reach 119 million euros, in line with the current market forecast of 120 million euros.