Lanxess shares fall 11% after weak second-quarter guidance
Updated
Updated · MarketWatch · May 7
Lanxess shares fall 11% after weak second-quarter guidance
6 articles · Updated · MarketWatch · May 7
The German chemicals group forecast Q2 EBITDA before exceptional items of 130 million to 150 million euros, below the 157 million euro Visible Alpha consensus midpoint.
First-quarter net loss widened to 141 million euros from 57 million, while sales fell 14% to 1.38 billion euros and EBITDA dropped 29% to 133 million euros.
Lanxess blamed lower raw-material costs, Asian price pressure, currency moves and the prior Urethane Systems sale, but said momentum had improved slightly since March and maintained full-year guidance.
Is Lanxess's struggle a symptom of a permanent decline for Germany's powerhouse chemical industry?
Amid an industry crisis, can Lanxess bridge the 65% gap between its stock price and its estimated intrinsic value?
Can Lanxess turn supply chain chaos into a lasting advantage against Asian rivals despite Germany's high energy costs?