Bharat Mirror English
Business

LANXESS takes action to counter weak market environment

Mumbai – A weak global market environment impacted LANXESS’ results in the second quarter of 2025. The specialty chemicals company achieved an EBITDA pre exceptionals of EUR 150 million, which is a 17.1 percent decline compared with the figure of EUR 181 million from the same quarter last year. Weaker demand in general was accompanied by lower sales volumes in all segments. The sale of the Urethane Systems business unit effective April 1, 2025, also contributed significantly to the decline in earnings. Second-quarter sales amounted to EUR 1.466 billion, down 12.6 percent on the prior-year figure of EUR 1.678 billion.

“The economic environment has deteriorated significantly again in recent months. Additionally, ongoing tariff discussions with the U.S. are causing considerable market uncertainty and exacerbating the situation for the European chemical industry. There is currently no improvement in sight for the economic situation,” says Matthias Zachert, CEO of LANXESS. “For us, this means continuing to focus fully on achieving the best possible positioning in the market, as well as in terms of costs, structures, and processes. When the economy picks up again, we will be ready and able to meet the additional demand much more efficiently and profitably.”

The EBITDA margin pre exceptionals was 10.2 percent in the second quarter, compared with 10.8 percent in the same period last year.

Due to the expected continued weak demand for the remainder of the year, LANXESS is adjusting its guidance for fiscal year 2025 and now anticipates an EBITDA pre exceptionals of between EUR 520 million and EUR 580 million. This includes a burden of EUR 10 million related to supply restrictions from a chlorine supplier. The Group had previously anticipated earnings of between EUR 600 million and EUR 650 million.

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