08 May 2013 09:47 [Source: ICIS news]
LONDON (ICIS)--LANXESS’ first-quarter net profit fell by 87% year on year to €25m ($33m) because of weak demand, the Germany-based chemical producer said on Wednesday.
In the three months to March 2013, the company's sales were down by 12% year on year to €2.10bn, mainly because of lower volumes and a fall in selling prices.
Earnings before interest, tax, depreciation and amortisation (EBITDA) pre exceptionals fell by 53% against the prior-year period to €174m. The group’s EBITDA margin fell from 15.5% in the first quarter of 2012 to 8.3% in the same period in 2013.
“The operating result was diminished by scheduled one-time effects of about €30m for the start-up of the new butyl rubber plant in Singapore and the conversion to Keltan ACE [Advanced Catalyst Elastomers] technology at the EPDM [ethylene-propylene-diene monomer] rubber plant in Geleen, the Netherlands,” LANXESS said.
The company said its agrochemicals business as well its position in the growth region of Asia proved to be stabilising factors in the first quarter.
In the group’s performance polymers segment, first-quarter sales fell by 19% year on year to €1.1bn as a drop in selling prices as a result of lower raw material prices led to a negative price effect, while volumes were down because of a fall in demand from the automotive and tyre industries. The segment’s EBITDA pre exceptionals fell by 56% to €112m.
In its advanced intermediates segment, first-quarter sales rose by 1% to €433m as higher prices for raw materials were passed on fully to the market. The segment’s EBITDA pre exceptionals rose by €1m against the prior-year quarter to €71m, the company said.
LANXESS’ performance chemicals segment saw sales decrease by 7% to €520m as volumes “declined as a result of the weak demand from the construction industry due to the long winter and from the business units linked to the tyre industry”. Its EBITDA pre exceptionals totalled €51m, down by €32m from the prior-period figure.
($1 = €0.76)
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