By Linda Pasquini
(Reuters) -German speciality chemicals maker Lanxess on Wednesday detailed its annual profit forecast, with the midpoint coming below market estimates, and said it expected recovery in the global economy and positive development in China during the second half of the year.
It expects 2023 earnings before interest, taxation, depreciation and amortisation (EBITDA) pre-exceptionals between 850 million and 950 million euros ($935.7 million and $1.05 billion). It had earlier forecast an EBITDA in line with last year's 930 million euros.
The midpoint of the guidance at 900 million euros falls short of analysts' estimate for an adjusted EBITDA of 915.1 million euros in a company-provided poll.
Lanxess, which makes high-end speciality chemicals such as additives, lubricants, flame retardants and plastics, has so far managed to pass rising raw material and energy costs following Russia's invasion of Ukraine onto customers.
The company said it expected earnings in the second quarter to be roughly at the level of the first quarter.
The Cologne-based group reported a 28% drop in its adjusted core profit to 189 million euros in the first quarter, broadly in line with analysts' estimate of 190 million euros.
Weak demand in some customer industries, especially in construction, and continued destocking by many customers weighed on the quarterly earnings, the company said.
"I expect the economic situation to brighten considerably in the second half of the year, which will also be reflected in our earnings," CEO Matthias Zachert said in a statement.
Lanxess' shares were indicated down 0.7% in Lang & Schwarz pre-market trade.
($1 = 0.9084 euros)