Arlanxeo sales up 25% in Q2 2017, EBITDA lower
Lanxess reports that sales in the Arlanxeo business segment rose 24.6 per cent year-on-year to 835 million euros. EBITDA pre-exceptionals decreased 3.0 per cent to 92 million euros; the speciality chemical company says increases in energy costs “in particular stood against the success in passing on increased raw material costs.” EBITDA margin pre-exceptionals was 11.0 per cent, against 14.2 per cent a year earlier.
Arlanxeo contains the former Lanxess Tire & Specialty Rubbers (TSR) and High Performance Elastomers (HPE) business units, and was created in April 2016 as a 50/50 joint venture company between the specialty chemicals firm and Saudi Aramco.
Parent company Lanxess increased its sales by 29.8 per cent year-on-year in the second quarter of 2017, to 2.5 billion euros. EBIDTA pre-exceptionals were up 25.3 per cent to 367 million euros, however the margin decreased from 15.1 per cent to 14.6 per cent. Net income for the quarter plummeted 96.0 per cent year-on-year to 3 million euros or four euro cents per share. Lanxess reports that the drop in net income was due to one-time effects resulting from the Chemtura acquisition and the planned closure of chrome chemicals production at its Zárate site in Argentina in the fourth quarter of 2017; adjusted for these effects, net income increased to 141 million euros, compared with 80 million euros in the second quarter of 2016.