Skip to main content
Sister Publication Links
  • Rubber & Plastics News
Subscribe
  • My Account
  • LogIn
  • News
  • Technology Focus
    • Features
    • Technical Papers
    • Analysis: Rubber mixing plants of the future
      Analysis: US probes dumping by ESBR suppliers
      Opinion: Tire labels stuck in a rut
      Analysis: NR pricing takes one step forward, two steps back
    • White paper: Role of tire innerliners in improving 'in-use rolling resistance'
      White paper: Why tire air retention matters now more than ever
      Nippon Soda: Use of 1,2-polybutadiene in CSM rubber applications
      Elastomers for Sustainability Top 10
  • Events
    • ERJ Events
    • ERJ Livestreams & Webinars
    • Industry Events
    • Journey to Automation Awards 2020
      Sustainability: Top 10 E4S projects table
  • Maps & Reports
  • People
  • Directory
  • Digital Edition
  • Brainiac
MENU
Breadcrumb
  1. Home
  2. News
November 14, 2013 12:00 AM

Lanxess reports drop of 88 percent in net income in 3Q

ERJ Staff
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    ERJ staff report (RPN)

    Cologne, Germany − Lanxess AG has reported an 88-percent drop in net income to $14.7m (€10.9m) for the third quarter of 2013, reported Rubber & Plastics News.

    The company said the drop can be attributed to higher depreciation and amortisation, in addition to charges of $26.8m (€19.9m) for its announced efficiency program.

    Lanxess also reported a sales decline of 5 percent to $2.81bn (€2.09bn).

    The company reported a 9-percent volume increase year-on-year, but it did not offset the overall price decline of 11 percent. Lanxess said the rubber prices fell particularly in the rubber businesses belonging to the Performance Polymers segment. The firm also cited negative currency effects as an impact.

    Sales in the Performance Polymers segment fell by 8 percent to $1.47m (€1.09m). Volumes increased by 14 percent with a strong increase in Asia. The company cited a difficult market environment and lower prices for raw materials − especially butadiene − that led to a 19 percent decrease in sale prices.

    Lanxess said apart from the gradual increase in volumes throughout its segments, the ongoing strong demand for agrochemicals and positive sales development in the Asia-Pacific region had a stabilising effect on quarterly results. Third quarter sales in the Asia-Pacific region accounted for 25 percent of the group sales and increased by 5 percent to $691.6m (€514.5m).

    The firm expects the market environment to remain difficult, especially in the automotive and tire industries. To address the challenging economic situation, Lanxess has begun implementing its efficiency improvement program, which is comprised of cost savings, a global headcount reduction and portfolio adjustments.

    Lanxess will pursue "strategic options" for some of its non-core businesses. The company said those include its rubber chemicals' accelerators and antioxidants lines, nitrile-butadiene rubber business and Perlon-Monofil polyamid and polyester monofilament products.

    Its non-core activities combine for approximately $674.1m (€501.4m) in sales and consist of approximately 1,000 employees, according to the company

    The company also is aiming to save $135.3m (€100.6m) by 2015 and beyond by eliminating 1,000 jobs worldwide.

    RECOMMENDED FOR YOU
    China’s 11-month tire production records first growth in 2020
    China’s 11-month tire production records first growth in 2020
    ANRPC notes rubber price recovery
    ANRPC notes rubber price recovery
    Biesterfeld to supply Denka acrylate rubbers
    Biesterfeld to supply Denka acrylate rubbers
    Free Newsletters

    Breaking news and in-depth coverage of essential topics delivered straight to your inbox.

    Subscribe today

    Get the latest news impacting the European rubber industry, from breaking news to razor-sharp analysis, in print and online.

    Subscribe now
    Connect with Us
    • LinkedIn
    • Twitter
    • Youtube

    Logo
    Contact Us

    @ 2019 European Rubber Journal. All rights reserved.
    Contact Us European Rubber Journal, Crain Communication LTD, Ground Floor 11 Ironmonger Lane, London EC2V 8EY, UK

    Customer Service:
    1-313-446-0450

    Resources
    • About us
    • Contact Us
    • Staff
    • Advertise with Us
    • Media Kit
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
    • Technology Focus
      • Features
      • Technical Papers
    • Events
      • ERJ Events
      • ERJ Livestreams & Webinars
      • Industry Events
    • Maps & Reports
    • People
    • Directory
    • Digital Edition
    • Brainiac