ERJ staff report (DS)
Leverkusen, Germany -- Sales and profits increased at rubber manufacturer, Lanxess AG In the three months to June 2012. The company said profit (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.
The company said the weakness of the euro and increased selling prices contributed strongly to the increase in sales. It added that raw material cost increases were fully passed on to the market in all segments.
Lanxess' 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. The Asia-Pacific region proved a particularly strong growth driver. EBITDA pre exceptionals for the segment rose by more than 12 percent to EUR 257 million.
For Europe, Lanxess continues to predict weak economic development as a result of the euro debt crisis. The company anticipates moderate economic growth in Asia and Latin America. The US economy will probably continue to expand, though possibly at a slower pace.
Lanxess is adding more capacity, though it did not name any specific projects and now expects capital expenditures of EUR 650 million to EUR 700 million in 2012 in comparison to the EUR 600 million originally planned.
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Press release from Lanxess