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BASIC INDUSTRIES: Lanxess (LXSGR Baa3[N]/NR/NR): 2Q24 Preliminary EBITDA

BASIC INDUSTRIES

Small positive for spreads. Negative outlook overhang remains.

  • Lanxess has announced preliminary EBITDA pre exceptionals is expected at €181mn, 34% ahead of consensus.
  • FY24 guidance of 10-20% EBITDA growth is confirmed; consensus is 12% and should see upgrades following this release.
  • Cites improved utilisation rates following destocking last year. Agro and construction markets remain weak.
  • Consensus FY leverage was 4.4x, this update could take that down to 4.2x area. Leverage should remain well above Moody’s threshold for the rating (3.5x gross adjusted).

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