(Reuters) - German specialty chemicals maker Lanxess (DE:LXSG) cut its full-year profit guidance on Wednesday, saying it expected the impact of the coronavirus pandemic to intensify in the second and third quarters.
The former Bayer (DE:BAYGN) unit added the outbreak had hardly restricted its deliveries so far, with its largest production facilities remaining operational.
Lanxess forecast its 2020 earnings before interest, tax, depreciation and amortization (EBITDA) to come in between 0.8 billion euros and 0.9 billion euros ($866.96 million - $975.33 million), compared to March forecast of 0.9 billion euros to 1.0 billion euros.
In the second quarter, Lanxess expected EBITDA before exceptional items to come in between 200 million euros and 250 million euros.
"So far, we have been able to keep the economic impact of the coronavirus pandemic within limits – mainly thanks to our balanced portfolio," Chief Executive Matthias Zachert said.
The company reported first-quarter EBITDA before exceptional items of 245 million euros, slightly above a company-provided consensus of 240 million euros, saying positive development in its new consumer protection segment, which includes antiviral disinfectants, and specialty additives segment significantly mitigated the coronavirus impact.
Lanxess said in February it was trying to boost production volumes of its disinfectant Rely+On Virkon to meet rising demand, and has since donated the solution to several countries hit by the pandemic.
The company said a further pandemic-driven slump in demand from the auto industry, which accounts for 20% of its sales, had a negative effect on earnings.
Lanxess' rival Covestro (DE:1COV) last week reported first-quarter results slightly above expectations, saying it expected improvement in its business from the third quarter.