ERJ staff report (TP)
Cologne, Germany – Specialty chemicals company Lanxess said it anticipates a full-year net loss for 2013 of €159m.
The firm said: “[We have] undergone impairment tests, according to IAS 36 [International Accounting Standard 36 – its aim to ensure assets are carried at a value no more than their recoverable amount], that result in exceptional charges of €257m in the fourth quarter of 2013.
“Due to the expected development of overcapacities, as well as raw material and energy costs, a competitive environment is anticipated in which future cash flow contributions no longer reflect the book values of the business units Keltan Elastomers and High Performance Elastomers (Performance Polymers segment), as well as Rubber Chemicals (Performance Chemicals segment).
“The impairment charges are being incurred financially in the fourth quarter of 2013 and affect EBIT and net income in 2013. They are, however, not cash relevant.
“The above-mentioned impairment charges, together with exceptional expenses of about €30mn, brought forward within the ‘Advance’ efficiency program, result in a negative net income and earnings per share (EPS) in the fourth quarter of 2013, as well as full year 2013.
“The full-year net loss for 2013 is expected to be €159mn. Full-year EPS is expected to be negative at €1.91. EBITDA pre exceptionals are not subject to the impairment charges and are expected to be €735m, within the guided range of €710-760m. Sales are expected to be €8.bn. The final numbers will be provided in the 2013 consolidated financial statements that have not yet been completed.
“Subject to Supervisory Board approval, the Board of Management plans to propose a dividend of €0.50 per share for the business year 2013 at the Annual General Meeting on 22 May 22. Lanxess paid a dividend of €1 per share for the business year 2012.
“For the full year 2014, Lanxess expects slightly improved EBITDA pre exceptionals due alone to the absence of one-off items, even if selling prices remain at low levels.”
Lanxess will publish its final full-year results for 2013 on 20 March.
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Press release from Lanxess