06 August 2013 07:08 [Source: ICIS news]
SINGAPORE (ICIS)--LANXESS’ second-quarter 2013 net profit shrank to €9m ($12m) from €174m in the same period last year, amid a challenging business environment, the German company said on Tuesday.
Sales for the three months ending June 2013 declined 11.7% year on year to €2.14bn, with earnings before interest, tax, depreciation and amortisation before exceptionals falling 45.2% to €198m, the company said in a statement.
“The first half of 2013 does not meet our own high standards,” LANXESS chairman Axel Heitmann said in the statement.
“Trading conditions for our businesses remain tough and the fragile sentiment in Europe is now evident in other markets that are important for us, such as China and Brazil,” he said.
LANXESS said that continued weakness in demand in the automotive and tyre industries has affected its sales.
The German producer expects the business environment in 2013 to “remain challenging” as it targets a pre-exceptionals EBITDA of €700-800m this year, adding that a €1.4bn target for 2014 is “no longer realistic”.
”Customers continue to destock their inventories, noticeably in Asia, and overall consumer sentiment remains weak,” LANXESS said.
($1 = €0.75)
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections