Lanxess posts improved Q2 income
Although volumes at Lanxess increased two per cent year-on-year in the second quarter of 2014, this could not fully offset the five per cent decline in selling prices it experienced. Therefore, the company’s overall sales fell 5.7 per cent year-on-year to €2.02 billion. “The continuing low earnings level and increasing competition show the need for further action to improve competitiveness,” said Board of Management chairman Zachert.
EBITDA pre-exceptionals came in ahead of the prior-year quarter, climbing 20.7 per cent to €239 million. Lanxess says this development was attributable to higher volumes, increased utilisation of production capacities and savings from its “Advance” efficiency programme. The operating result was thus at the upper end of the forecasted range of between €220 million and €240 million. The EBITDA margin pre-exceptionals rose from 9.2 per cent a year earlier to 11.8 per cent.
Net income improved substantially to €55 million, compared to €9 million for the same period of last year. This was partly due to an improved financial result and lower exceptional charges. In the prior year, €40 million had been incurred for restructuring in the Performance Chemicals segment.
The company continues to anticipate higher earnings in 2014 compared to the previous year, and based on these most recent results it has narrowed its full-year guidance. “We are narrowing our original earnings guidance of between €770 million and €830 million, and now expect to achieve EBITDA pre-exceptionals in 2014 of between €780 million and €820 million,” said Zachert.