LANXESS expects highest earnings in history in 2017
Specialty chemicals company LANXESS is still on course for the highest earnings in its history following an excellent third quarter of 2017. Global sales increased by 25.1% to EUR 2.4 billion from EUR 1.9 billion during the same period last year. EBITDA pre exceptionals improved by 35% to EUR 347 million, compared with EUR 257 million 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% which was considerably above the value of 13.4% reported in the prior-year period.
“LANXESS is in full swing. Our clear strategic focus on high-margin speciality 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 speciality 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 EUR 55 million, after EUR 62 million 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% to EUR 106 million, compared with EUR 77 million in the prior-year 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 EUR 25 million. LANXESS now expects EBITDA pre exceptionals of between EUR 1.25 billion and EUR 1.3 billion. This would be a record for the Cologne-based company, as its highest operating result to date is the roughly EUR 1.2 billion in 2012.