Lanxess group sales grow 4% in 2012

Sales of the Performance Chemicals segment improved by more than 3 percent in 2012 to approximately EUR 2.2 billion. Volumes fell in the Rubber Chemicals and Rhein Chemie business units, where customers in the automotive-related industries account for a substantial proportion of sales. Positive effects came from the acquisitions made by the Material Protection Products, Functional Chemicals and Rhein Chemie business units. EBITDA pre exceptionals of the segment was down by nearly 3 percent to EUR 281 million, primarily due to higher energy and manufacturing costs.

“Green Mobility”

In 2012, LANXESS had sales of approximately EUR 1.6 billion with products and technologies for “Green Mobility”, which accounted for some 17 percent of overall sales. The company expects to achieve sales of some EUR 2.7 billion in sales from “Green Mobility” by 2015.

Sound financial position

The good business development led to a strong operating cash flow, as well as a sound balance sheet. Capital expenditures grew to EUR 696 million, compared with EUR 679 million a year prior. Operating cash flow showed a positive development in 2012. Despite an increase in working capital, this key indicator improved from EUR 672 million to EUR 838 million.

“Net financial liabilities declined by EUR 32 million year-on-year to EUR 1,483 million at the end of the year despite acquisitions and increased investment activity,” explained LANXESS Chief Financial Officer Bernhard Duettmann. The ratio of net financial liabilities to EBITDA pre exceptionals fell from 1.3 to 1.2. “This underlines our conservative financial policy, which is characterized by long-term financing and far-sighted steering of financial risks,” he added.

Lanxess