LANXESS is continuing to weather the crisis well and is confirming its forecast for the full year. The specialty chemicals company still anticipates EBITDA pre exceptionals of between EUR 800 million and EUR 900 million for 2020.
In the second quarter of 2020, LANXESS recorded a significant impact on its business results from the coronavirus pandemic, as expected. EBITDA pre exceptionals fell by 20.3 percent from EUR 281 million to EUR 224 million. Earnings were thus at the midpoint of the range of between EUR 200 million and EUR 250 million that was forecast in May. The EBITDA margin pre exceptionals was almost stable at 15.6 percent, against 16.3 percent in the prior-year quarter.
Group sales amounted to EUR 1.436 billion in the second quarter of 2020, down 16.7 percent on the previous year’s figure of EUR 1.724 billion. Net income from continuing operations rose significantly from EUR 96 million to EUR 803 million.
At the same time, net financial liabilities decreased from EUR 1.74 billion to EUR 929 million. This was attributable to proceeds from the sale of its stake in chemical park operator Currenta, which LANXESS concluded at the end of April. The company used this cash inflow to further strengthen its sound balance sheet: Compared to the end of 2019, the equity ratio has risen from 30 percent to 37 percent.