Aug 9 (Reuters) - Speciality chemicals maker Lanxess (LXSG.DE) , opens new tab reported a 5.6% drop in its second-quarter sales on Friday, below market expectations, citing lower selling prices as it passed on reduced raw material and energy costs.

Lanxess's quarterly core profit beat expectations in mid-July, as the German company managed to cut costs and better utilise its production plants after reducing inventories in 2023.

Quarterly sales declined to 1.68 billion euros ($1.83 billion) from 1.78 billion in the previous year, missing analysts' forecast of 1.72 billion in a poll , opens new tab by Vara Research.

The company, which said it continued to focus on reducing debt and increasing cash flow in the second quarter, reported a free cash flow of 83 million euros after generating no cash flow in the same quarter of the previous year.

Net debt declined by 11% to 2.55 billion euros as of June 30, compared to 2.86 billion euros at the same time last year, Lanxess said.

Shares indicated 2.3% higher in pre-market trade at Lang & Schwarz.

The company confirmed its forecasts for earnings before interest, taxes, depreciation and amortisation (EBITDA) pre-exceptionals to grow by 10% to 20% in 2024.

While it still expects the figure to be close to or up to the level of the second quarter for the July-September period, it said it anticipated a more muted performance in the last three months of the year as a result of the regular seasonal development.

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https://www.reuters.com/markets/commodities/lanxess-sales-drop-56-q2-2024-08-09/