Aug. 7 (Bloomberg) -- Lanxess AG, the maker of synthetic rubber for Pirelli & C SpA tires, fell in Frankfurt trading as the company’s profit outlook for the remainder of the year pointed to the low-end of its target range.
Lanxess declined as much as 4.5 percent to 58.12 euros. Profit is expected to remain unchanged in the second half, after a 6.8 percent advance in the second quarter, the company said today. That implies annual growth in earnings before interest, tax, depreciation, amortization and one-time items of about 6 percent to 1.22 billion euros ($1.51 billion), according to Bloomberg calculations.
Chief Executive Officer Axel Heitmann said today that the Leverkusen, Germany-based company is sticking to goals for operating profit to grow 5 percent to 10 percent. Investors may have hoped for earnings closer to the top end of the range, said Oliver Schwarz, an analyst at MM Warburg.
“It’s not so nice that it’s the bottom end of the range,” said Schwarz, who rates the stock hold.
Lanxess was trading down 4.1 percent at 58.34 euros as of 10:28 a.m. local time. Shares have risen 45 percent this year, boosting the company’s market value to 4.84 billion euros.
Second-quarter operating profit before one-time items gained to 362 million euros, beating a 355.1 million-euro analyst estimate. Sales rose 8.1 percent to 2.42 billion euros, slightly missing a 2.43 billion-euro estimate, according to a Bloomberg survey.
To contact the reporter on this story: Sheenagh Matthews in Frankfurt at firstname.lastname@example.org
To contact the editor responsible for this story: Benedikt Kammel at email@example.com