Lanxess earnings up 15% in Q1

ERJ staff report (LMH)

Leverkusen, Germany - Lanxess's first quarter earnings (EBITDA) increased by nearly 15 percent year-on-year to Euro 369 million in the first quarter. Net profit increased by 16 percent year-on-year to EUR 193 million.

Sales for the same period were Euro 2.4 billion, an increase of 15 percent. This was mainly due to price increases of 9 percent that fully offset rising raw material costs, Lanxess said. Positive portfolio effects of 7 percent were mainly attributed to the Keltan-EPDM-business acquired from DSM.

First quarter sales in the Performance Polymers segment, which includes butyl and butadiene rubber, and technical rubber products, rose 28 percent year-on-year to Euro 1.4 billion. Earnings (EBITDA) also increased by 28 percent year-on-year to Euro 255 million. Lanxess' high-performance synthetic rubbers remained in high demand from the tyre.

In the Performance Chemicals business, which includes rubber chemicals, sales were practically flat year-on-year in the first quarter at Euro 558 million. Earnings fell 8 percent to 83 million mainly due to weaker demand in the construction and electronic industries.

EMEA (Europe excluding Germany, Middle East, Africa) remained the largest sales region in the first quarter, with 29 percent of overall group sales. The region increased sales by 9 percent to Euro 699 million. Sales in Germany rose five percent to Euro 416 million in the first quarter and represented 17 percent of group sales.

North America showed the strongest top-line growth, with sales up 29 percent year-on-year to Euro 423 million, representing 18 percent of group sales.

Latin America increased sales by 23 percent year-on-year to Euro 301 million in the first quarter due to the company's strong foothold in Brazil. The region represented 13 percent of group sales.

Asia-Pacific increased sales by 19 percent year-on-year to Euro 549 million in the first quarter, representing 23 percent of group sales. China and Thailand showed the strongest sales growth.

Sales in the five BRICS countries (Brazil, Russia, India, China, South Africa) rose 21 percent year-on-year to Euro 554 million and represented 23 percent of Group sales in the first quarter.

Lanxess said full year earnings are expected to grow by 5-10 percent compared to 2011.

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Press release from Lanxess