Belgium's Syensqo tightens full-year forecast on soft demand expectation (updated)

Solvay SA

01/08/2024 06:23

(Adds group CEO comment in paragraph 3 and second-quarter
earnings in paragraph 4)
       Aug 1 (Reuters) - Belgian speciality chemicals firm
Syensqo  SYENS.BR  on Thursday lowered the top end of its core
profit forecast range for 2024, saying it does not expect a
broader demand recovery in the final six months of the year.
    The group now expects underlying earnings before interest,
taxes, depreciation, and amortization (EBITDA) between 1.4
billion euros and 1.475 billion euros ($1.52 billion-$1.60
billion) in 2024, compared with the previous guidance of 1.4
billion to 1.55 billion euros.
    "We see a slower recovery in certain end markets, as well as
ongoing macroeconomic uncertainty," group CEO Ilham Kadri said
in a statement.
    Underlying EBITDA came in at 378 million euros for the
second quarter, slightly below analysts' expectations of 383
million euros, according to a company-compiled consensus.
    Syensqo, which was spun off from Belgian chemicals group
Solvay  SOLB.BR  last year, reiterated its capital expenditure
and free cash flow forecasts for the year.
    Chemicals companies have been under pressure for more than a
year, forced to reduce inventories on lower demand from
industrial clients as energy prices soared.
    Swiss speciality chemicals maker Clariant  CLN.S  lowered
its full-year sales forecast on Tuesday due to the weak
performance of its catalysts unit. 
    The Swiss group also said it does not anticipate a broad
market recovery in the second half of the year, as it expects
raw materials prices to increase slightly.


($1 = 0.9238 euros)

 (Reporting by Alban Kacher and Leo Marchandon; Editing by
Subhranshu Sahu)
 ((Alban.kacher@thomsonreuters.com ;
leo.marchandon@thomsonreuters.com))