LANXESS Q3 net profits fall 25% on 2007 gain

13 November 2008 09:17  [Source: ICIS news]

LONDON (ICIS news)--LANXESS’ third-quater net profits fell 25.3% to €56m ($70m) from €75m in the same period last year due to one-off gains in 2007, the company said on Thursday, adding that due to good operating results it had raised its full-year guidance.

“The decline was attributable to the weaker financial result, which was boosted in the prior-year quarter by gains from the divestment of non-core businesses,” said the German specialty chemicals company in a statement.

Operating profits pre-exceptionals rose 6.3% to €119m from €112m in the third quarter last year, while sales were 6.4% higher at €1.81bn.

Earnings before interest, tax, depreciation and amortisation (EBTIDA) rose 9.1% year on year.

All segments grew sales in the third quarter, the company said, adding that throughout the group, the increases in raw material and energy costs were passed on to the market through selling price increases.

“Following a very successful third quarter, we are raising our earnings forecast for 2008,” said Axel Heitmann, chairman of the board of management

The company said it expects EBITDA pre-exceptionals to come in at between €710m and €730m.

“In certain fields LANXESS is already feeling the challenges presented by a steadily weakening economy and is countering this development by actively managing capacity usage and continuing to systematically implement efficiency-improvement measures,” said Heitmann.

“For the full year 2008 we plan to achieve an EBITDA margin in line with that of our peer group. We also intend to attain an EBITDA margin in excess of 5% in all of our business units and maintain our investment-grade rating,” he added.

($1 = €0.80)

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By: Hilde Ovrebekk
+44 20 8652 3214

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