STOCKS NEWS EUROPE-Lanxess seen higher on strong Q4

Shares in Lanxess (LXSG.DE) are indicated 3.3 percent higher in pre-bourse trade after the German chemical company releases better-than-expected nine-month EBITDA and net profit and gives a more precise 2009 EBITDA outlook, but warns that the fourth-quarter might be difficult. "Lanxess may react positively on better third-quarter earnings and better outlook, but the weak outlook on the fourth quarter may bring Lanxess' share down in a second move," says a Frankfurt-based trader.

Lanxess reported sales that fell 24.3 percent from a year earlier to 1.373 billion euros, with adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) that was down 25.5 percent at 143 million euros.

"EBITDA was much better than expected. Sales were a bit lower though due to price declines," says DZ Bank analyst Peter Sprengler, adding that the 2009 outlook was in line with market expectations.

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