UpdateGermany's LANXESS Q3 net income up 30.5% on strong demand

10 November 2011 10:57  [Source: ICIS news]

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LONDON (ICIS)--German specialty chemicals maker LANXESS reported on Thursday a 30.5% year-on-year increase in its net income to €154m ($208m) in the third quarter of this year, boosted by strong demand for the firm’s synthetic rubbers and high-tech plastics.

The company’s overall sales rose by 26.5% year on year to €2.34bn in July-September, while its pre-exceptionals earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 27.5% to €311m, the company said in a statement.

“We confirm our outlook for EBITDA pre-exceptionals to grow by about 20% this year and thus exceed the €1bn mark for the first time,” said Axel Heitmann, chairman of the company’s board of management.

Business remained strong in the performance polymers segment in the third quarter of 2011, with sales up 48.3% year on year to €1.4bn, the company said.

EBITDA for the polymers business rose by 60.2% year on year to €213m in the third quarter, it added.

Sales in the advanced intermediates business grew by 4.2% year on year to €371m in the third quarter, while EBITDA increased by 3% to €68m, the company said.

Sales in the performance chemicals business increased by 1.6% year on year to €523m in the third quarter, it said.

However, EBITDA for performance chemicals fell by 9.6% to €75m in the quarter because of adverse volume and exchange rate developments, the company added.   

Looking ahead, LANXESS said it is keeping to its growth strategy to achieve €1.4bn in pre-exceptionals EBITDA in 2015.

“In order to reach this goal, the company is continually investing in new and existing plants to meet growing demand,” LANXESS said, adding that it expects to spend €600m in 2011.

($1 = €0.74)

Additional reporting by Nurluqman Suratman

By: Leigh Stringer
+44 208 652 3214

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