Lanxess flags charges of more than half a billion euros in 2023
28/02/2024 07:34
Feb 28 (Reuters) - Lanxess LXSG.DE said on Tuesday it
will record special charges of more than half a billion euros in
its balance sheet for the past year, due to a goodwill
impairment and an adjustment of at-equity book value of its
minority interest in Envalior.
The goodwill impairment charge amounted to 413 million euros
($447.16 million), Lanxess said.
It applies to two of the German specialty chemicals group's
units - flavours and fragrances and polymer additives - due to
weak demand, especially in 2023 and 2024, the company added.
Lanxess said it would also have to reduce the value of its
minority interest in plastics joint venture Envalior, resulting
in a low to medium triple-digit million-euro amount.
Shares in Lanxess are indicated down 3.4% in Lang & Schwarz
premarket trade.
The charges have no impact on the operating result adjusted
for special items (EBITDA) for 2023, which is expected to be in
line with an average of 510 million euros expected by analysts
in a Vara consensus, the company said.
It still holds a 40.9% stake in Envalior, to which the group
had contributed its high-performance polymers business in the
spring of 2023.
The investment was still valued at 1.06 billion euros at the
end of September.
($1 = 0.9236 euros)
(Reporting by Alexander Huebner and Linda Pasquini, Editing by
Rachel More)
((linda.pasquini@thomsonreuters.com; +48 58 7785261;))