Berlin, December 6, 2017
Specialty chemicals company Lanxess has reported the earnings for the third quarter of 2017 as the highest in its history. Global sales increased by 25.1 per cent from 483 million euros to 2.4 billion euros. A year earlier, they amounted to 1.9 billion euros. EBITDA pre exceptionals improved by 35 per cent to 347 million euros, compared with 257 million euros in the prior-year quarter. The contributions from the acquired Chemtura businesses as well as higher volumes had a particularly positive effect. The EBITDA margin pre exceptionals in the third quarter of 2017 stood at 14.4 per cent, which was considerably above the value of 13.4 per cent reported in the prior-year period.
“Lanxess is in full swing. Our clear strategic focus on high-margin specialty chemicals is increasingly paying off, and in operational terms we are performing very well in our new setup. It is particularly pleasing that all regions and all our specialty chemicals segments are seeing considerable earnings growth,” said Matthias Zachert, Chairman of the Lanxess Board of Management.
Due to one-time exceptional charges, net income was 55 million euros, after 62 million euros in the prior-year quarter. These one-time effects resulted primarily from the consolidation of the production of lubricant precursors and the associated discontinuation of production at the Ankerweg site in Amsterdam (Netherlands). Net income pre exceptionals increased by 37.7 per cent to 106 million euros, compared with EUR 77 million in the previous year’s quarter.
After the strong figures of the third quarter, the group is refining its earnings forecast for 2017 and lifting the lower end of the range by 25 million euros. Lanxess now expects EBITDA pre exceptionals of between1.25 billion euros and 1.3 billion euros. This would be a record for the Cologne based company, as its highest operating result to date is the roughly 1.2 billion euros achieved in 2012.
After the consolidation of production of chrome chemicals and lubricant precursors, Lanxess drives the announced optimization of its portfolio. The Group sold the non-core business with chlorine dioxide disinfectant solutions to the Canadian Superior Plus Corp. The chlorine dioxide business, with its headquarters in North Kingstown, USA, and around 40 employees, was part of the Clean and Disinfect division acquired from Chemours in August 2016.