Lanxess outlook positive on raw materials strategy

29 May 2008 10:53  [Source: ICIS news]

LONDON (ICIS news)--Lanxess’s 2008 outlook remains positive because it has managed to pass on increased raw material costs, the company said in a post-AGM statement on Thursday.

 

“We will continue to consistently apply our successful price-before-volume strategy, which so far has enabled Lanxess to quickly pass on raw material price increases in full to its customers,” Lanxess board chairman Axel Heitmann said.

 

Although Lanxess accepted there was an economic slowdown it was not expecting this to impact them, the German company said.

 

“We anticipate that EBITDA [earnings before interest, tax, depreciation and amortization] pre exceptionals will exceed €700m ($1094m) in 2008,” Heitmann added.

 

The company predicted that world economic growth would continue to weaken. The global chemical economy should remain stable, however, buoyed by strong demand in Asia-Pacific, Latin America, and Central and Eastern Europe.

 

However, the statement said prospects were increasingly gloomy for the chemical industry in North America.

 

Heitmann said the company was positioned to achieve in 2008 the goals it had set for 2009 and generate EBITDA margin pre-exceptions in line with the industry average to achieve a margin of at least 5% in all business units.

 

Lanxess’ share price was up 1.07% to €30.25 in early trading on the Xetra.

 

To discuss issues facing the chemical industry go to ICIS connect

 

($1 = €0.64)

By: Lucy Craymer
+44 20 8652 3214

< previous article(VIDEO - ICIS news Europe Lunchtime Bulletin 27 October 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly