Cologne, Germany – A “good” start to the year for Lanxess has prompted the new-look polymers and chemicals maker to up its previous earnings forecast for fiscal 2016.
First quarter earnings (EBITDA pre-exceptionals) reached €262 million, 14 percent higher than in the prior-year quarter, on sales of 6 percent lower at €1.92 billion.
Lanxess linked the earnings gains to higher volumes, increased capacity utilisation, positive currency effects, and the absence of ramp-up costs for new rubber plants in Asia last year.
The sales dip, it said, “resulted particularly from the adjustment in selling prices to reflect lower raw material prices.”
With the higher profitability, the Cologne-based group now expects full-year earnings of between €900 million and €950 million – compared to €880-930 million before.