LANXESS sales up 30%

Following a good second quarter 2017, speciality chemicals company LANXESS continues to expect the highest earnings in the company’s history for the current financial year.

Global sales of the company increased by almost 30 per cent to EUR 2.5 billion, up from EUR 1.9 billion a year earlier. EBITDA pre-exceptionals improved by around 25 per cent to EUR 367 million, compared with EUR 293 million in the prior-year quarter. This increase was primarily due to the earnings contribution from the newly acquired Chemtura businesses as well as to higher volumes and selling prices. The EBITDA margin pre exceptionals in the second quarter of 2017 stood at 14.6 per cent, which was slightly below the high value of 15.1 per cent reported in the prior-year period.

“Our growth strategy is paying off. Our strong operating performance and our profitable acquisitions are the basis for our strong results in the second quarter. The newly acquired Chemtura businesses are already making a significant earnings contribution, and the other areas of our speciality chemicals portfolio are also developing positively,” said LANXESS CEO Matthias Zachert.

Due to one-time exceptional charges, net income was EUR 3 million, after EUR 75 million in the prior-year quarter. The one-time effects resulted from the Chemtura acquisition and the planned closure of chrome chemicals production at the Zárate site in Argentina in the fourth quarter of 2017. Adjusted for these effects, net income increased by around 75 per cent to EUR 141 million, compared with EUR 80 million in the second quarter of 2016.

“We are overall well on track and continue to expect record earnings for the full year. However, compared with the very strong prior year, we are anticipating a slightly weakened momentum for the second half of 2017,” said Zachert.

LANXESS continues to forecast EBITDA pre-exceptionals for the full year 2017 of between EUR 1.225 billion and EUR 1.3 billion. The company achieved its highest operating result to date in 2012, when it posted a figure of around EUR 1.2 billion.

Sales in the Performance Chemicals segment rose by 11.2 per cent in the second quarter of 2017, to EUR 367 million, against EUR 330 million a year earlier. EBITDA pre exceptionals advanced by 15.9 per cent to EUR 80 million, compared with the prior-year level of EUR 69 million. Higher selling prices and the Clean and Disinfect specialties business acquired in 2016 had a positive effect on earnings. The EBITDA margin pre exceptionals increased from 20.9 per cent to 21.8 per cent.