Belgium's Syensqo plans to cut about 2% jobs, shares jump
Q3 EBITDA above analyst consensus
Co to cut 300-350 jobs in France, US, Belgium, Italy
Co tightens annual EBITDA forecast for 2nd time since Aug
Adds CEO quotes in paragraphs 4 and 8, and share moves in paragraph 5
By Dimitri Rhodes
Nov 5 (Reuters) -Belgian chemicals maker Syensqo SYENS.BR unveiled plans on Tuesday to cut around 2% of its global workforce to support long-term growth and reported third-quarter profit ahead of analysts' expectations, sending its shares more than 6% higher.
The 300 to 350 job cuts will be primarily in France, the United States, Belgium and Italy, Syensqo said in a statement.
Spun off from Belgian chemicals group Solvay SOLB.BR last year, Syensqo reviewed its structure and projects to focus on growth opportunities and improve returns profile, consistent with its mid-term financial targets.
"Separation from Solvay system will end next year by 2025, and this will mean the creation of more than 700 new jobs in IT, system infrastructure and business intelligence," CEO Ilham Kadri told reporters on a conference call.
Syensqo shares were last up 6.6% at 0708 GMT, outperforming a 0.1% fall in the STOXX index.
Separately, Syensqo reported third-quarter earnings before interest, taxes, depreciation, and amortisation (EBITDA) of 374 million euros ($407.36 million), above the 360 million euros expected by analysts in a company-compiled consensus.
However, it flagged macro and industry uncertainties, most notably in the aerospace and automotive sectors, in several of its end markets.
"Automotive is about the long-term trends, so the short-term dynamic hit us but the fundamentals are sound," Kadri said.
Syensqo, however, tightened its annual underlying EBITDA forecast range for the second time since August, to between 1.4 billion euros and 1.44 billion euros from 1.4 billion euros to 1.475 billion euros previously expected.
Chemicals companies have been under pressure for more than a year, forced to reduce inventories on lower demand from industrial clients as energy prices soared.
"Our outlook reflects fourth-quarter seasonality as well as the expected EBITDA and cash flow impacts from the strike at Boeing and its related supply chain disruption," the company said.
($1 = 0.9181 euros)
Reporting by Dimitri Rhodes; Editing by Subhranshu Sahu
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