Lanxess continues growth story with higher volumes, selling prices

Lanxess continues growth story with higher volumes, selling prices

10:09 AM, 22nd June 2011
Lanxess continues growth story with higher volumes, selling prices
Axel C Heitmann, CEO, Lanxess.

 

 

  • 2010 Sales EUR 7.1 billion, up 41 per cent yr-on-yr
  • EBITDA pre exceptionals EUR 918 million, up 97 per cent yr-on-yr
  • Net income EUR 379 million vs. EUR 40 million yr-earlier
  • Outlook 2011: Sales and EBITDA pre exceptionals to increase yr-on-yr

 

DUSSELDORF, GERMANY: Lanxess reported fourth-quarter 2010 Ebitda before special items up 19 per cent, to € 172 million ($ 241 million), on sales up 32 per cent, to € 1.8 billion. Improved volumes and selling prices, as well as favorable currency exchange rates across all business drove growth, said Lanxess. “Our growth story is set to continue after an outstanding 2010 and an excellent start to 2011. Growth will be driven by our focus on emerging markets and premium products serving the global megatrends mobility, urbanization, agriculture and water,” said Axel C Heitmann, CEO, Lanxess at the annual press conference in Düsseldorf.”

Lanxess also witnessed booming business across emerging markets, while its volumes increased across all businesses. The synthetic rubber business benefited from the German government’s legislation and the advanced intermediates segment reported the strongest growth in the fourth quarter, supported by a recovery in the agrochemical end market, informed the company.

Full-year 2010 net income rose nine fold, to €379 million, on sales up 41 per cent, to € 7.1 billion. Ebitda before special items nearly doubled, to $918 million. The perfomance polymers segment’s full-year Ebitda before special items more than doubled, to € 585 million, on sales up 58 per cent, to € 3.8 billion. The butyl rubber and performance butadiene rubbers businesses benefited from the recovery in the tire replacement and OEM market. The technical rubber products and semi-crystalline products businesses “performed strongly” because of improved demand and increased marketing activities, said Lanxess.

Advanced intermediates earnings before special items rose 44 per cent, to € 222 million because of volume and price increases, and the integration of the basic chemicals companies in India and China, said the company. Basic Chemicals and Saltigo both benefited from a recovery in the agrochemical end markets towards the end of the year. The leather and functional chemicals businesses reported the greatest improvement in earnings last year, said the company.

Lanxess is confident about growth for 2011. Sales and EBITDA pre exceptionals are expected to be higher than the 2010 results. The global economy and the chemical industry will continue to grow but at a slower rate compared to 2010. The emerging markets in Asia/Pacific and Latin America will show the strongest growth rates. Performance Polymers will grow due to positive demand for tires and high-tech plastics. Advanced Intermediates will benefit from the improved business environment for agrochemicals. Performance Chemicals will profit from the gradual recovery in the construction industry in Europe and the US, as well as the ongoing growth in the automotive sector. All three segments will also grow as additional capacities come on stream, informed the company.

© WOC News

 

 


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