Arlanxeo posts marked drop in sales and earnings

Cologne, Germany – Sales at Arlanxeo – the 50/50 synthetic rubber JV between Lanxess and Saudi Aramco – fell 14.1 percent in the second quarter to €670 million, compared with €780 million a year earlier, Lanxess reported 10 Aug.

Second quarter earnings (EBITDA pre exceptionals), meanwhile came in at €95 million, compared to €116 million in the prior-year quarter.

“The ongoing pressure on prices for synthetic rubbers had a diminishing effect, as did the production outage at a major supplier in Asia,” said Lanxess.

By contrast, the EBITDA margin pre exceptionals in the second quarter stood at a "relatively high level of 14.2 percent, compared with 14.9 percent in the year-earlier period," the Germany group added.