Lanxess, the Cologne-based specialty chemicals firm, has slashed its 2025 earnings forecast due to worsening economic conditions, now projecting an operating profit of €520–580 million, down from €600–650 million. The company cited persistent U.S. tariff disputes and broader market uncertainty as key pressures. Cost-cutting measures include early closures of facilities in Krefeld-Uerdingen (60 jobs lost) and Widnes, UK (70 jobs affected), with expected annual savings of €50 million by late 2027. Q2 results underscored the challenges: revenue fell 13% to €1.47 billion, with agrochemicals and construction sectors hit hardest. Operating profit dropped 17% to €150 million, while net losses widened to €45 million.
Investor Confidence Erodes
The bleak outlook sparked a 3% stock decline to €23.60, extending a 20% slide since May. Analysts noted the forecast cut was steeper than anticipated, with one firm maintaining an "underperform" rating and a €21 target. Management warned of no near-term recovery, compounded by supply chain disruptions costing an additional €10 million. Lanxess joins a growing list of chemical firms downgrading expectations amid global economic headwinds.
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