Lanxess: Shocking forecast reduction – implications for Cologne!

Lanxess: Shocking forecast reduction – implications for Cologne!

The economic situation at Lanxess is currently challenging. The company has sharply revised its annual forecast for 2025 downwards. Instead of the originally targeted 600 to 650 million euros, adjusted Ebitda is now only expected to be between 520 and 580 million euros. This adjustment is the result of weaker consumer demand and ongoing price pressure, particularly from Asia, which is putting many markets under stress. A report from Review online highlights that customs and economic policies continue to be volatile, which only increases the uncertainties at Lanxess.

Sales in the second quarter of 2025 amounted to 1.466 billion euros, falling by 13 percent compared to the same quarter of the previous year. Ebitda also fell from 180 million euros to 150 million euros – around 17 percent less. Nevertheless, the cash flow of 31 million euros contributed to positive development. Liabilities were also reduced by 18 percent to around 2 billion euros, after previously being 2.5 billion euros. These measures are part of a comprehensive strategy to ensure financial stability in turbulent times.

Closures and structural adjustments

Given the tense situation, strategic decisions were made. The closure of the hexane oxidation site in Krefeld-Uerdingen was brought forward to the end of the second quarter. This measure affects around 65 employees. The closure of aroma chemicals production at the Widnes site in Great Britain is also planned for next year, which could cost around 70 jobs. But not everything is gloomy: Efficiency improvements for bromine products are planned at the El Dorado site in the USA, which should bring annual savings of around 50 million euros by the end of 2027.

Despite the difficult conditions, there are also bright spots: the “Consumer Protection” area recorded an increase of 9 percent in the quarter. The “Specialty Additives” and “Advanced Intermediates” segments, on the other hand, suffer from weak industrial demand and high energy costs, which pushed Ebitda values ​​down to minus 17 percent and minus 24 percent, respectively. CEO Matthias Zachert described American customs policy as an “escalation” and called for better economic conditions from politicians to ensure Lanxess’ competitiveness.

Future outlook and strategies

Zachert has clear plans for the future: In addition to a leaner cost structure, he is aiming for a more competitive portfolio in order to create an “economic upturn”. Given the predicted developments in the third quarter, which will be characterized by volatility and stay-at-home orders, it remains to be seen how the situation will develop in the long term. However, the strategic measures are intended to help Lanxess emerge from this crisis stronger.

For more information about Lanxess' plans and developments, those interested can visit the company website: Lanxess.