Lanxess raises guidance for 2021

New Delhi, May 12 (SocialNews.XYZ) Lanxess has raised its guidance for 2021 following a good first quarter.

The German specialty chemicals company now expects EBITDA 'pre exceptionals' of between 950 million-1 billion euros. Previously, the company had assumed earnings of between 900 million-1 billion euros.

At 242 million euros, EBITDA 'pre exceptionals' in the first quarter came in at the good level of the prior-year quarter (245 million euros), which had not yet been significantly affected by the coronavirus pandemic, said a company statement.

Group-wide, volumes in the first quarter of 2021 were above the prior-year level. Growing demand from the automotive sector was a key driver, particularly in the Engineering Materials segment, it said.

"This was offset by the effects of weather-related production shutdowns in the US in the Advanced Intermediates, Specialty Additives and Consumer Protection segments. Moreover, negative exchange rate effects, particularly from the US dollar, and significantly higher energy costs, especially in Germany, had a negative impact," it said.

Group sales in the first quarter of 1.693 billion euros were at the good level of the previous year (1.704 billion euros). Group income from continuing operations also remained stable at 63 million euros.

"The positive momentum from the fourth quarter has continued and we have made a good start to the new year. We are benefiting from a further increase in demand, particularly in the automotive sector," said Matthias Zachert, Chairman of the Board of Management of Lanxess AG.

"Operationally, we have thus left corona behind us and are now very confident about the rest of the year. Now we are focusing on our growth course and are doing everything we can to ensure that our new businesses quickly develop their full potential."

Source: IANS