ERJ staff report (BC)
Leverkusen, Germany – Lanxess has forecast a larger-than-estimated fall in profits for the current quarter due to weak demand from the tire and automotive industries.
Earnings before exceptionals is predicted to fall to between €160-180m in the quarter, the German speciality chemicals company said. That compares with €369m a year earlier. “In this persistently volatile environment, Lanxess will continue to focus on cost discipline and its proven flexible asset management,” the company said in the statement.
Looking back at 2012 Lanxess reported sales growth of 4%, to €9 094m, driven in the main by developments in emerging markets including China, solid demand for agrochemicals, “pleasing” contributions from acquisitions and a price-before-volume strategy.
But based on the weak business development in the first quarter, Lanxess currently expects that EBITDA in the business year 2013 will not reach the record level of the previous 12 months.
Lanxess chairman Axel Heitmann said: “Conditions may be more turbulent at the moment – but we remain optimistic thanks to our strategic set-up with a focus on the emerging markets and megatrends.”
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