Lanxess raises profit forecast for 2008 following strong Q3 result

ERJ staff report (DS)

Leverkusen, Germany -- Lanxess AG is increasing its earnings forecast for the full year 2008. The company now expects EBITDA pre exceptionals to come in at between EUR 710 million and EUR 730 million. “Following a very successful third quarter, we are raising our earnings forecast for 2008,” said Axel Heitmann, Chairman of the Board of Management of Lanxess AG.

Operating profit (EBITDA) pre exceptionals rose by 9.1 percent against the same period of last year, to EUR 191 million (Q3 2007: EUR 175 million).

Sales in the Performance Polymers segment -- which includes Lanxess' rubber activities -- rose by a substantial 40.6 percent in the third quarter of 2008, to EUR 938 million (Q3 2007: EUR 667 million). Lanxess said its selling prices across the division rose by just over 24 percent compared to the same quarter a year ago. The inclusion of the Brazilian Petroflex group resulted in additional growth of 26.7 percent. EBITDA pre exceptionals of the segment improved by a very significant 33.7 percent to EUR 127 million (Q3 2007: EUR 95 million). The EBITDA margin was down only slightly year on year, dipping by 0.7 percentage points to 13.5 percent.

Lanxess said it expects the financial market crisis to continue to impact the real economy in the coming months, resulting in a weaker overall economic climate for the remainder of fiscal 2008. The economic prospects for North America and western Europe will continue to deteriorate. There should be a moderate stimulus to growth in Asia-Pacific, central and eastern Europe and Latin America. However, the global decline in consumer spending is likely to have a dampening effect on these economies as well.

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Press release from Lanxess