Home / Knowledge / News / Textiles / LANXESS realigns management towards profitability
LANXESS realigns management towards profitability
12
May '14
With a modest start to 2014, LANXESS is currently developing measures to realign the company. 
 
Highlights: 
-Decision to increase share capital by 10 percent
-Q1 sales down 2.5 percent to EUR 2 billion
-Q1 EBITDA pre exceptionals increases by 17.8 percent to EUR 205 million
-Q1 net income level with prior year at EUR 25 million
-Q2 guidance: EBITDA pre exceptionals between EUR 220 million and EUR 240 million
-Outlook for FY 2014: EBITDA pre exceptionals between EUR 770 million and EUR 830 million
 
“We must become significantly more competitive and profitable again,” said Matthias Zachert, LANXESS’ Chairman of the Board of Management. “The focus will therefore be on the business portfolio, our business units, the efficiency of our administration and our production sites.”
 
Administrative structures are to be optimized and decision-making processes streamlined. Customer and market orientation in the business units are to be improved. The profitability of the sites will be analyzed and consideration given to temporary or permanent shutdowns of plants. LANXESS will also explore options to make its rubber activities more competitive and to balance its business portfolio. Further details on the realignment of the company will most likely be provided during the second half of this year.
 
The personnel adjustments that were initiated last year as part of the “Advance” program have been completed in line with expectations.
 
Decision to increase the share capital by 10 percent
The Board of Management of LANXESS AG has decided, with approval from the Supervisory Board, to utilize the existing authorized capital in part and to increase the share capital of the company by 10 percent, excluding the subscription rights of the shareholders. The increase of the share capital by a nominal amount of EUR 8,320,266 is against the issuance of 8,320,266 new, no par-value bearer shares in the company, which carry full dividend rights for the business year 2013.
 
The new shares will be offered by an international consortium of banks to institutional investors immediately by means of a private placement, using an accelerated bookbuilding process. The placement price and the proceeds from the issue will be made public on May 8, 2014, once the price has been fixed.
 
This corporate action should help finance upcoming restructuring measures and generally strengthen the financial position of the company as well as its investment grade credit ratings.
 
Click here to view full results.
 

LANXESS

Must ReadView All

Textiles | On 28th Apr 2017

Fix 5% GST rate for textile goods: Textile bodies

Uniform levy of 5 per cent Goods and Services Tax (GST) on all...

Textiles | On 28th Apr 2017

India lifts CVD imposed on Nepali Jute goods

The countervailing duty (CVD) that was imposed on Nepali jute...

Courtesy: Williamsburg Garment Company

Fashion | On 28th Apr 2017

'We have grown by staying small & maximising efforts'

The easiest way to go out of business is to be too big or expand too...

Interviews View All

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

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

news category


Related Categories:
April 2017

April 2017

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

SUBSCRIBE


Browse Our Archives

GO


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



X