Lanxess confirms 2012 forecast after a strong second quarter

qiangzi

Wednesday, August 8, 2012
9 N" P' [  t! q; ]9 f9 }
! L' r/ `! P$ L: Y; [# Q* hLeverkusen, Germany - Specialty chemicals group Lanxess continued to grow in the second quarter. EBITDA pre-exceptionals rose by 6.8 percent year-on-year to EUR 362 million. Sales advanced by 8.1 percent to EUR 2.42 billion. "We believe these results confirm our view of the seasonal development, and we are therefore adhering to our target of raising EBITDA pre-exceptionals by 5 to 10 percent for the full year," said Lanxess CEO Axel C. Heitmann. "Our focus on megatrends and growth regions, combined with our technological expertise, provides stability in an increasingly challenging environment." Sales improved mainly as a result of currency effects and selling price increases. Raw material cost increases were fully passed on to the market in all segments. The EBITDA margin pre-exceptionals, at 14.9 percent, was level with the previous year. Net income fell slightly by 3 percent to EUR 176 million due to reorganization measures in the performance chemicals segment. Net debt increased by 14.7 percent compared with the end of 2011, to approximately EUR 1.74 billion. Operating cash flow for the second quarter came in at minus EUR 49 million, due partly to an increase in working capital reflecting business activity. The performance polymers segment registered a year-on-year sales increase of over 11 percent in the second quarter of 2012, to EUR 1.43 billion. Rising raw material costs, especially for butadiene and isobutylene, were quickly passed on to the market through selling price increases. A positive portfolio effect from the acquisition of the Keltan EPDM business, along with favorable currency effects, contributed significantly to higher sales. Lanxess continues to anticipate a typically seasonal business pattern for the business year 2012. Consequently, the company expects the EBITDA contributions of the first half of the year in relation to the second half in a ratio of 60:40. In view of increasing economic challenges, Lanxess does not expect to see any further momentum in the second half of the year. -