06 November 2012 07:42 [Source: ICIS news]
SINGAPORE (ICIS)--LANXESS’s third-quarter 2012 net profit fell by 39% year on year to €94m ($121m) amid weakening demand in the tyre and automotive industries, the German specialty chemicals firm said on Tuesday.
Its sales fell by 7.6% year on year to €2.16bn due to lower volumes and raw material-driven product price decreases, while pre-exceptionals earnings before interest, tax, depreciation and amortisation (EBITDA) was down by 18% at €255m, the company said in a statement.
“The third-quarter result is in line with our expectations and is, at the same time, being compared to a very strong quarter a year earlier,” said LANXESS chairman Axel Heitmann.
“We are reacting to tougher conditions by implementing our proven counter measures such as flexible asset management and strict cost discipline,” he added.
The company said that the economic environment is not expected to worsen further in the fourth quarter of this year.
It expects full-year EBITDA growth to be at the lower end of the 5-10% range previously guided. LANXESS reported pre-exceptionals EBITDA of €1.15bn in 2011.
“For the fourth quarter LANXESS expects the automotive sector in Europe to remain weak, while growth in North America and China will continue, albeit at a slower rate,” the company said.
“Demand from the tyre industry will continue to remain weak, while agrochemicals will continue to show a stable performance,” it added.
Raw material and energy prices are expected to remain stable in October-December this year, according to LANXESS.
($1 = €0.78)
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