Lanxess says rubber sales volume fell 40 percent in Q1

ERJ staff report (DS)

Leverkusen, Germany -- Lanxess AG said it sold 40 percent less rubber in the three months to March 2009, compared with a year ago. The company said its Technical Rubber products were hit even worse, but did not mention a figure. The company blamed the decline on "the worldwide collapse of demand in all major customer industries, particularly the automotive sector."

Lanxess said sales of its Performance Polymers segment, which comprises the company's rubber activities, receded by 35.4 percent to euro 448 million (Q1 2008: EUR 693 million).

EBITDA pre exceptionals for the segment fell by more than 92 percent to EUR 8 million with much lower volume sales resulting in high idle capacity costs. Earnings were also substantially diminished by further inventory write-downs as well as continued destocking by customers. The EBITDA margin fell in line with the earnings trend to 1.8 percent (Q1 2008: 15.0 percent).

Group sales dropped by 31.3 percent year on year to EUR 1,054 million (Q1 2008: EUR 1,535 million).

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Press release from Lanxess