Cologne, Germany – Arlanxeo has seen significant falls in both sales and earnings in the first three months of the year, parent group Lanxess’ first-quarter results statement shows.
Sales at the synthetic rubber JV with Saudi Aramco dropped 20.1% to €757 million, while earnings (EBITDA pre exceptionals) came in 22.9% lower at €111 million.
The EBITDA margin pre exceptionals amounted to 14.7%, against 15.2% a year earlier, added the 8 May announcement from Cologne-based Lanxess.
On a positive note, Lanxess linked the sales-decline to a very strong quarter a year ago, while the drop in earning was “largely as a result of adverse currency effects.”
However, the performance of the synthetic rubber venture was again in stark contrast to that of other businesses across the speciality chemicals and polymers group.
Sales and earnings rose by 7.0% and 14.6% respectively, prompting Lanxess to raise its guidance for fiscal year 2018: earnings are now expected to come in 5-10% above last year’s €925 million result.
Arlanxeo is not included in the guidance for 2018 as it will be reported separately from the second quarter onwards.