Speciality chemicals group Lanxess (Cologne, Germany; www.lanxess.com) expects its core profit in 2023 to be flat amidst a recessionary business environment in the first half of the year while high energy prices in the last quarter of 2022 continue to make an impact at the start of the year.

Like the other chemical companies, Lanxess warned the war in Ukraine and prices of raw material and energy would remain sources of uncertainty.

The company expects EBITDA excluding one-offs – such as costs for strategic realignment and restructuring, mergers and acquisition as well as digitalisation – to be on the same level as 2022, which was EUR 930 mn. This 2022 figure represented a 14.1% growth year-on-year. For the first quarter, it is forecast at EUR 180-220 mn, down from EUR 320 mn in the same period last year.

Sales in 2022 climbed 32.6% to EUR 8.09 bn with the Americas region leading the way. Sales in EMEA excluding Germany improved 28%, soaring 31% in Germany.

Net income from continuing operations rose 60% to EUR 184 mn. This does not include the results of the High Performance Materials business unit, which Lanxess spun off and classified as a discontinued operation.

CEO Matthias Zachert said 2023 “will not be easier”, adding that weak demand in Q4 is still palpable at the start of the new year. “But I am convinced that we will make it through this economic slump thanks to our stable positioning,” he said.

Q4 sales added 17.5% to EUR 1.97 bn on the back of increases in all segments driven by pricing. EBITDA excluding one-offs gained 1.7%, with the strong pricing offset by weak utilisation rates amid internal inventory management and customer de-stocking.

Growth in 2022 was especially driven by the Specialty Additives and Consumer Protection segments. Sales at Specialty Additives, which benefited from the ongoing recovery in the aviation industry, jumped 29.4% to EUR 2.97 bn on strong pricing and exchange rate changes. EBITDA excluding one-offs advanced 48.3% EUR 479 mn.

At Advanced Intermediates – comprising the industrial intermediates and inorganic pigments business units – volumes dropped massively due to low demand and customer restocking. Sales expanded 23.8% to EUR 2.41 bn. At EUR 291 mn, EBITDA excluding exceptionals fell 12.6%.