Lanxess continues to expect record earnings for 2017
Following a good second quarter 2017, specialty chemicals company Lanxess continues to expect the highest earnings in the company’s history for the current financial year. Across all segments, sales were substantially higher year on year.
Global sales of the company increased by almost 30 percent to EUR 2.5 billion, up from EUR 1.9 billion a year earlier. EBITDA pre exceptionals improved by around 25 percent to EUR 367 million, compared with EUR 293 million in the prior-year quarter. This increase was primarily due to the earnings contribution from the newly acquired Chemtura businesses as well as to higher volumes and selling prices. The EBITDA margin pre exceptionals in the second quarter of 2017 stood at 14.6 percent, which was slightly below the high value of 15.1 percent reported in the prior-year period.
EBITDA between EUR1.225 and 1.3 billion
“Our growth strategy is paying off. Our strong operating performance and our profitable acquisitions are the basis for our strong results in the second quarter. The newly acquired Chemtura businesses are already making a significant earnings contribution, and the other areas of our speciality chemicals portfolio are also developing positively,” said Lanxess CEO Matthias Zachert.
Lanxess continues to forecast EBITDA pre exceptionals for the full year 2017 of between EUR 1.225 billion and EUR 1.3 billion. The company achieved its highest operating result to date in 2012, when it posted a figure of around EUR 1.2 billion.
Segments are overall well on track
Sales in the new Specialty Additives segment climbed by 106.6 percent to EUR 440 million, compared with EUR 213 million a year earlier. EBITDA pre exceptionals advanced by 67 percent to EUR 75 million, compared with the prior-year level of EUR 45 million. This positive development was primarily due to the contribution from the newly acquired Chemtura businesses. Higher volumes also supported this effect. The EBITDA margin pre exceptionals of 17.0 percent was below the high level of 21.1 percent reported in the prior-year quarter.
Sales in the Performance Chemicals segment rose by 11.2 percent in the second quarter of 2017, to EUR 367 million, against EUR 330 million a year earlier. EBITDA pre exceptionals advanced by 15.9 percent to EUR 80 million, compared with the prior-year level of EUR 69 million. Higher selling prices and the Clean and Disinfect specialties business acquired in 2016 had a positive effect on earnings. The EBITDA margin pre exceptionals increased from 20.9 percent to 21.8 percent.
