(Corrects company portfolio in paragraph 7)
By Dimitri Rhodes and Noemie Naudin
(Reuters) -Belgian chemicals group Solvay warned of continued uncertainty in its main markets fuelled by U.S. President Donald Trump’s tariffs, as it narrowed its 2025 adjusted core profit forecast, sending its shares down as much as 14% in early trade.
“As we navigate this period of global economic uncertainty, it’s of course very hard to predict what will happen with trade negotiations, currency fluctuations, or GDP evolution,” CEO Philippe Kehren told reporters on a call on Thursday.
Analysts at both JPMorgan and Jefferies said they expect share price pressure.
The group previously guided for adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of between 1.0 billion euros ($1.13 billion) and 1.1 billion euros. It now expects to reach the lower half of that range.
Analysts polled by Vara Research had forecast an EBITDA of 1.04 billion euros for 2025.
“What we see is that this uncertainty, in particular, is creating an impact on the demand,” Kehren added.
Solvay, which produces a range of essential chemicals ranging from soda ash to peroxides used in high-purity electronics, also cut its capital expenditure guidance to 300 million euros from a range of 300-350 million euros earlier.
“There is not enough room in order to make new investments,” Kehren said.
Solvay also warned that the second-quarter underlying EBITDA to be sequentially lower, following an increase in the temporary stranded costs from the exit of the Transition Service Agreement with Syensqo.
The company has been cutting costs due to soft demand and volatile business environment, and in March raised its target for the annual gross savings run-rate to 350 million euros in 2028, from 300 million euros earlier.
“We don’t see yet any positive impact from the different measures that have been taken in some regions,” Kehren said.
“What we expect is that if this materializes, it won’t be most probably before the year-end that we will see the positive impacts.”
Solvay, whose recently spun-off speciality chemicals firm Syensqo said in February it was exploring a U.S. listing, does not see growth prospects in the country, adding it sees more options in the Middle East, Africa, Southeast Asia, India, Latin America, Kehren added.
($1 = 0.8830 euros)
(Reporting by Dimitri Rhodes and Noemie Naudin in Gdansk; Editing by Rashmi Aich)
