Lanxess reports strong earnings in H1; but margins slip in rubber

Leverkusen, Germany - Lanxess AG has reported a good second quarter. In performance rubber, the company said sales of Euro 448 million were slightly higher than the same period a year ago (Euro 432 million), while pre-tax earnings (EBITDA) fell to Euro 62 million from Euro 70 million a year previously.

The company said sales are split almost equally between the three units: technical rubber products; butyl rubber and butadiene rubber.

Higher costs in butyl were passed on to customers and there was volume growth in all regions, with significant growth in Asia. In butadiene rubber, the volumes were less than the record period a year ago, with a significant decline in North America partially offset by increases in Asia. In technical rubber products, the comapny said it managed to pass on most of the raw material cost increases faced during the quarter, and further savings in restructuring led to good results.

The company noted that legal costs in Q2 2005 were Euro2 million, but zero in 2006

Overall, Lanxess said it expected earnings (EBITDA) for the full year to be Euro 660 million to Euro 680 million. Three months ago, the company left its estimates of Euro 640m - Euro 680 million unchanged.

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Press release from Lanxess