Germany's Lanxess raises 2021 profit outlook on demand recovery
Aug 11 (Reuters) - German speciality chemicals maker Lanxess raised its 2021 core profit outlook on Wednesday - the second time this year - driven by a rebound in the auto industry's demand and continued strong performance of its disinfectants business.
The Cologne-based group now sees 2021 adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in the range of 1 billion euros to 1.05 billion euros ($1.17 billion-$1.23 billion), compared with a previous forecast of 950 million to 1 billion euros.
Lanxess, which generates a fifth of its sales from the auto industry, said it managed to largely pass on the sharp rise in raw-material prices in all segments by adjusting selling prices.
"Volumes are back to pre-pandemic levels and we are confident about the second half of the year," Chief Executive Officer Matthias Zachert said in a statement.
The company also said the outlook reflects the acquisition of U.S.-based rival Emerald Kalama Chemical - completed in early August - as it expects EBITDA contribution of around 35 million euros for the remainder of 2021.
Its quarterly EBITDA excluding one-offs increased 23.7% to 277 million euros, above analysts' average estimate of 267 million euros in a company-provided poll. ($1=0.8535 euros) (Reporting by Linda Pasquini in Gdansk; Editing by Clarence Fernandez and Uttaresh.V)
