Web Exclusive | April 2019
LANXESS makes good progress
Speciality chemicals company LANXESS closed its fiscal year with a strong result. In 2018, EBITDA pre exceptionals increased by 9.8 per cent to EUR 1.016 billion. As forecast, earnings are at the upper end of the range of 5 to 10 per cent above the previous year’s figure of EUR 925 million (without ARLANXEO).
“Despite rising economic headwind, we delivered on our promises. We made very good progress strategically and operationally: LANXESS now has a very clear focus on speciality chemicals. Today, we are more profitable, more stable and more competitive than ever – and that is paying off,” said Matthias Zachert, Chairman of the Board of Management of LANXESS AG.
The good operating result was driven in particular by the operating strength of the Advanced Intermediates, Specialty Additives and Engineering Materials segments as well as the integration of Chemtura and the phosphorus additives business acquired from Solvay. The EBITDA margin pre exceptionals came in at 14.1 percent.
LANXESS group sales rose by 10.2 per cent from EUR 6.53 billion in the previous year to EUR 7.197 billion. At EUR 431 million, net income was considerably higher than the previous year’s figure of EUR 87 million. This was due to the year-on-year improvement in the operating result as well as effects from the sale of the 50 per cent stake in ARLANXEO. Moreover, the previous year’s net income was reduced by one-off expenses.
“We have used the proceeds from the sale of our interest in ARLANXEO to further strengthen our balance sheet. In addition, we have gained additional scope for driving our growth forward both organically and through acquisitions,” said Michael Pontzen, Chief Financial Officer of LANXESS AG.
In the Performance Chemicals segment, sales and the operating result fell short of the strong previous year due in particular to weak development in the leather and construction industries. Sales fell by 6.3 percent from EUR 1.439 billion to EUR 1.349 billion. EBITDA pre exceptionals amounted to EUR 187 million, down 25.8 per cent on the previous year’s figure of EUR 252 million. The EBITDA margin pre exceptionals came in at 13.9 per cent, against 17.5 per cent a year ago.