(Reuters) -Belgian chemicals group Syensqo posted second-quarter underlying earnings before interest, taxes, depreciation, and amortisation of 335 million euros ($382.97 million), an 8% organic
Belgium's Syensqo underlying quarterly earnings down 8%
Syensqo's Financial Performance Overview
(Reuters) -Belgian chemicals group Syensqo posted second-quarter underlying earnings before interest, taxes, depreciation, and amortisation of 335 million euros ($382.97 million), an 8% organic decline, driven by lower gross profit partially offset by reduced operating expenses.
Earnings and Gross Profit Analysis
The results slightly exceeded analysts' consensus forecast of 327 million euros, provided by the company, though they fell short of the 378 million euros reported in the same period last year.
Impact of Foreign Exchange and Tariffs
Gross profit for the quarter dropped 13% year-on-year to 506 million euros, weighed down by lower volumes and unfavorable foreign exchange fluctuations, as the euro appreciated approximately 12% against the dollar amid tariff-related uncertainty.
Future Outlook and CEO Insights
The group reaffirmed its 2025 outlook, projecting underlying core earnings of roughly 1.3 billion euros, despite an anticipated 100 million euro hit from foreign exchange and tariffs.
"Two-thirds of this impact is attributed to currency fluctuations and one-third to tariffs," Chief Financial Officer Christopher Davis said.
CEO Ilham Kadri, speaking to journalists, underscored the need for clarity in the EU-U.S. trade deal, which imposes a 15% import tariff on most EU goods and commits the bloc to $600 billion in U.S. investments. "It's a bit too early," she said, adding, "we're still looking to understand what it means in terms of implementation."
Kadri, who serves as president of the European Chemical Industry Council (CEFIC), also called for prioritizing zero tariffs for chemicals, highlighting Europe’s competitiveness challenges.
The agreement, described by European Commission President Ursula von der Leyen as the best achievable, imposes a 15% import tariff on most EU goods, commits the EU to $600 billion in U.S. investments, and grants enhanced access to specific sectors in the European market.
($1 = 0.8747 euros)
(Reporting by Antonis Pothitos; Editing by Himani Sarkar and Louise Heavens)
