Home / Knowledge / News / Textiles / Exceptional charges of €275mn to affect Lanxess Q4 EBIT
Exceptional charges of €275mn to affect Lanxess Q4 EBIT
26
Feb '14
Specialty chemicals company LANXESS has undergone impairment tests, according to IAS 36, that result in exceptional charges of EUR 257 million in the fourth quarter of 2013.
 
Due to the expected development of overcapacities, as well as raw material and energy costs, a competitive environment is anticipated in which future cash flow contributions no longer reflect the book values of the business units Keltan Elastomers and High Performance Elastomers (Performance Polymers segment), as well as Rubber Chemicals (Performance Chemicals segment). 
 
The impairment charges are being incurred financially in the fourth quarter of 2013 and affect EBIT and net income in 2013. They are, however, not cash relevant.
 
The above-mentioned impairment charges, together with exceptional expenses of about EUR 30 million, brought forward within the “Advance” efficiency program, result in a negative net income and earnings per share (EPS) in the fourth quarter of 2013, as well as full year 2013. 
 
The full-year net loss for 2013 is expected to be EUR 159 million. Full-year EPS is expected to be negative at EUR 1.91. EBITDA pre exceptionals is not subject to the impairment charges and is expected to be EUR 735 million, within the guided range of EUR 710-760 million. Sales are expected to be EUR 8.3 billion. The final numbers will be provided in the 2013 consolidated financial statements that have not yet been completed.
 
Subject to Supervisory Board approval, the Board of Management plans to propose a dividend of EUR 0.50 per share for the business year 2013 at the Annual General Meeting on May 22, 2014. LANXESS paid a dividend of EUR 1 per share for the business year 2012.
 
For the full year 2014, LANXESS expects a slightly improved EBITDA pre exceptionals due alone to the absence of one-off items, even if selling prices remain at low levels. 
 

Lanxess


Must ReadView All

Textiles | On 22nd Jul 2017

Govt constitutes GST Feedback and Action Room

The Government of India has constituted a Feedback and Action Room...

Textiles | On 22nd Jul 2017

India’s cotton textile exports fell in FY17: Tamta

The overall export of cotton textiles from India declined in 2016-17...

Textiles | On 22nd Jul 2017

Stella McCartney, Bolt Threads partner for eco fashion

Fashion designer Stella McCartney has partnered with Bolt Threads for ...

Interviews View All

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X