LANXESS Q3 net profit falls 59% to €23m on lower sales

12 November 2009 07:11  [Source: ICIS news]

LONDON (ICIS news)--Germany’s LANXESS posted a 59% fall in its third-quarter net profit year on year to €23m ($34m) on lower sales, the specialty chemical company said in a statement on Thursday.

Sales for the three-month period ending 30 September fell 24% on the same period last year to €1.37bn, the company said.

“Our self-help measures coupled with an improved economic climate, in particular in China, has supported us in delivering a very respectable third quarter performance,” said LANXESS Board of Management chairman, Axel Heitmann.

The Performance Chemicals segment was the only division to see an improvement in earnings before interest, tax, depreciation and amortisation (EBITDA) pre exceptionals – it rose 3% year on year to €67m.

LANXESS said the global economic environment remained challenging despite seeing some recent improvements.

The statement said LANXESS expected Asia to be the “growth engine” behind the global economy and that fourth quarter would see a weakness in demand due to seasonality.

The fourth quarter could be burdened by a drop off in sales after several customers brought forward purchases in the third quarter ahead of price increases, the company added.

“Taking into account these factors, LANXESS expects to achieve EBITDA pre exceptionals of €400 to €420m for the full year 2009,” said Heitmann.

($1 = €0.67)

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By: Lucy Craymer
+44 20 8652 3214

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