Lanxess at lowest in over 3 years after profit warning flags lack of recovery
20/06/2023 08:42
(Adds analyst comments, milestone, updates stock moves)
** Shares in Lanxess LXSG.DE slump 15%, hitting its lowest
level since the beginning of the pandemic in March 2020, after
the German speciality chemicals maker cut its Q2 and FY guidance
citing persisting "very weak" demand
** "I think the most important cross read is really that
Lanxess is seeing no uptick in order volumes for (Q3), also not
from China," analyst Konstantin Wiechert at Baader Helvea said
in an e-mail
** This puts at risk every company guidance that implies
a noticeable improvement in China in H2 of this year, such as
BASF, Evonik, EMS-Chemie, and Lenzing LENV.VI
** "Warning is likely to further depress near-term sentiment
towards sector," a local trader says, even if no more a
"complete surprise" after latest warnings from peers such as
Croda CRDA.L and Victrex VCTX.L
** Shares in peers Wacker Chemie WCHG.DE , Evonik
EVKn.DE , BASF BASFn.DE and Covestro 1COV.DE fall between
2.6-5%
** Swiss competitors Clariant CLN.S and EMS Chemie
EMSN.S are down 2.5% and 1% respectively
(Reporting by Linda Pasquini)
((linda.pasquini@thomsonreuters.com))