21 September 2011 10:51 [Source: ICIS news]
SINGAPORE (ICIS)--German producer LANXESS said on Wednesday it expects a better year-on-year financial performance in the third quarter, while reiterating its full-year target of delivering a 20% growth in pre-exceptional earnings before interest, tax, depreciation and amortisation (EBITDA).
In the third quarter of 2010, the company posted a more than five-fold increase in net profit to €118m ($162m), with pre-exceptional EBITDA up 71% year on year to €244m.
“As announced, we will increase our  EBITDA pre-exceptionals by roughly 20%. The third quarter is going very well and will be better than the third quarter of last year,” said LANXESS CEO Axel Heitmann in a statement.
The company had a record quarterly net profit of €181m in the second quarter.
LANXESS said it has earmarked €130m in research expenses, up 15% year on year.
“Of this amount, some 80% is being invested in the company’s German sites,” the company said.
Meanwhile, LANXESS said the company will benefit from an expected increase in demand for its high-performance rubber products, once the tyre-labelling law in the Europe takes effect next year.
The legislation requires that all tyres be classified based on fuel efficiency, among other parameters.
“Because of the EU tyre labelling initiative, the market share of ‘green tires’ made of high-performance rubber will increase from its present 35% to around 50% of the overall tyre market,” LANXESS said.
($1 = €0.73)
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