LEVERKUSEN, Germany – LANXESS achieved a strong set of results in the third quarter of 2010 due to strong demand for its synthetic rubber and high-tech plastics. As a result, the specialty chemicals group has lifted, for the second time this year, its earnings forecast for 2010. It now expects EBITDA pre exceptionals of roughly EUR 900 million for the full year after previously forecasting roughly EUR 800 million in August.
“We are heading for a strong
performance in 2010, which clearly reflects our successful strategy of focusing
on premium products and the emerging markets,” said Axel C. Heitmann, Chairman
of the Board of Management of LANXESS AG. “Our results also indicate that we
are on track to achieve our goal of approximately EUR 1.4 billion EBITDA pre
exceptionals in 2015.”
LANXESS’ top-ten sales
products in the third quarter were from the company’s synthetic rubber and
high-tech plastics activities, which mainly serve the tire and automotive
Group sales increased 35
percent year-on-year to EUR 1.85 billion due to higher volumes in key customer
industries, positive currency effects and above all price increases, which
fully offset higher raw material costs. The company posted a net income of EUR
118 million in the third quarter in comparison to EUR 23 million a year
recorded the strongest year-on-year growth in the third quarter, with sales
rising 86 percent year-on-year to EUR 271 million.
Sales in Asia-Pacific rose
21 percent year-on-year to EUR 408 million and represented 22 percent of group
sales. All segments increased sales year-on-year.
The EMEA (Europe, Middle East,
Africa, excluding Germany) region increased top-line growth by 24 percent to
EUR 503 million driven by the Performance Polymers and Performance Chemicals
Sales in Germany rose 22 percent to EUR 340
million in the third quarter, representing 18 percent of group sales.
America, sales grew by 60 percent to EUR 325 million and
represented 18 percent of group sales.
The BRIC countries (Brazil, Russia,
India, and China) represented 23 percent of
group sales in the third quarter, in comparison to 22 percent and 20 percent in
the corresponding quarters in 2009 and 2008.
Sales of the Performance
Polymers segment rose 50 percent year-on-year to EUR 986 million in the third
quarter, driven by price increases and strong demand notably in Latin America.
Third-quarter sales in the
Advanced Intermediates segment rose 18 percent year-on-year to EUR 336 million.
Sales of the Performance
Chemicals segment rose 21 percent year-on-year to EUR 515 million in the third
quarter, with all seven business units showing sales improvements.