15 September 2010 09:34 [Source: ICIS news]
LONDON (ICIS)--LANXESS will aim to increase its leading earnings indicator by around 80% in the next five years through investments in new capacity and focus on growth in Brazil, Russia, India and China (BRIC), the German specialty chemicals producer's chief executive said on Wednesday.
Axel Heitmann said the company would be targeting earnings before interest, tax, depreciation and amortisation (EBITDA) pre-exceptionals of around €1.4bn ($1.8bn) in 2015.
“Our track record reflects our operational strength. By the end of this year, we will have increased our EBITDA pre-exceptionals by roughly 80% since 2004, in spite of the global economic crisis,” Heitmann said in a statement.
He also confirmed the company's forecast of an EBITDA pre-exceptionals of €800m in 2010.
"LANXESS plans to achieve its mid-term earnings target through a dual-track growth strategy of organic and external growth. Organic growth will play the more dominant role," the company said.
It said the company benefited from its focus on premium products serving the four "megatrends" of mobility, agriculture, urbanisation and water.
"The company's BRIC strategy and the expected growth of its leading customer industries will help each of its businesses to generate an EBITDA compound annual growth rate of at least 5% through 2015," LANXESS said.
The percentage of group sales in BRIC countries has more than doubled in the last five years, according to LANXESS.
The company said it had been and would be investing in a number of projects in the synthetic rubber industry, as well as addressing the 'megatrend' of mobility through its high tech plastics Durethan and Pocan with expansions of production in ?xml:namespace>
Other investment projects, such as those in
LANXESS said it would continue to explore external growth opportunities to strengthen its existing business portfolio.
CFO Matthias Zachert said the current focus was on small to medium-sized acquisitions similar to the transaction size of past acquisitions.
He added that both organic growth projects and acquisitions would have to adhere to strict financial criteria.
($1 = €0.78)
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