German specialty chemicals company Lanxess said a “weak economic environment and massive geopolitical uncertainties” pushed sales down for a second quarter in a row after demand remained soft across major end markets, the company said.
Revenue fell 16.3% to €1.34 billion as global economic uncertainty weighed on orders.
Performance of various segments varied, but the least hard hit was specialty additives, which includes lubricant additives and synthetic base stocks. This segment reported an 8.2% decline in sales to €505 million and lower earnings because of reduced plant utilization.
The results extend a period of sluggish conditions for many chemical suppliers, which have been pressured by slow industrial activity, cautious customer spending and weak output in construction, automotive and agriculture.
“Berlin and Brussels must act faster to improve competitiveness, or entire value chains are at risk,” CEO Matthias Zachert said.
Additives producers continue to face subdued lubricant and manufacturing demand, keeping utilization levels low and limiting pricing power.
The company is still going ahead with investments, having recently announced a capacity expansion at its Qingdao site in Shandong province, China.