Q1 2025 Lanxess AG Earnings Call Transcript
Key Points
- Lanxess AG (LNXSF) reported a 32% increase in EBITDA compared to Q1 2024, indicating a significant improvement in profitability.
- The Consumer Protection segment saw a sharp increase in performance, driven by a recovery in agro orders.
- The divestiture of the Urethanes business was completed faster than anticipated, strengthening the company's balance sheet.
- Lanxess AG (LNXSF) has a strategic hedging plan in place, protecting against currency fluctuations and minimizing financial risk.
- The company expects a sequential improvement in Q2, with a focus on leveraging tariff advantages in the US market.
- Working capital increased due to seasonal sales pickups, leading to higher net debt compared to Q4.
- Macroeconomic uncertainty has increased, with clients reducing order patterns to a one-to-two-week basis due to tariff-related volatility.
- The lack of urethanes contribution will result in a EUR15 million reduction in operational EBITDA for Q2.
- Energy costs have been a burden for the Advanced Intermediates segment, impacting profitability.
- The overall industry momentum remains weak, with the chemical industry operating at around 70% utilization, indicating a challenging trading environment.
Good day and thank you for standing by. Welcome to LANXESS first-quarter 2025 results webcast and conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your first speaker today, Andre Simon, Head of Investor Relations. Please go ahead, sir.
Yeah, thank you very much, Amber, and a warm welcome to everybody to our Q1 '25 conference call from my end as well. As always, we begin by asking you to take notice of our Safe Harbor statement.
And with me today is our CEO, Matthias Zachert; and our CFO, Oliver Stratmann. Matthias will start with a short presentation, and then we will open the floor for your questions. And with that, I'm happy to hand over to Matthias. Please go ahead.
Thank you, Andre, and welcome to everybody on the Q1 conference call today. I will start the
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