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Q3 net zooms three-fold at chemicals producer Lanxess
10
Nov '14
Despite sales staying flat, net income at German specialty chemicals company, Lanxess AG skyrocketed three-fold in the third quarter of 2014, from a year earlier quarter.

With all three business segments contributing to the earnings increase, net income at Lanxess zoomed to EUR 35 million in the reporting period, against EUR 11 million in the prior-year quarter.

However, sales in the third quarter of 2014, Lanxess stayed flat at EUR 2.04 billion, from the same quarter of the previous year, with marginally higher volumes compensating slightly lower prices.

EBITDA pre-exceptionals rose 12.3 percent to EUR 210 million in the quarter under preview, from EUR 187 million, in the third quarter of 2013.

According to Lanxess, the EBITDA hike came primarily from savings in administration, higher plant utilization rates and the absence of inventory write-downs.

In the three months to September 30, 2014, EBITDA margin pre-exceptionals expanded to 10.3 percent, compared with 9.1 percent, in the year earlier quarter.

Mainly on account of capital increase, Lanxess said, net financial liabilities at end of the third quarter declined to around EUR 1.4 billion from EUR 1.7 billion at the end of 2013.

In the third quarter of 2014, sales at the Performance Polymers segment dropped 4.3 percent to EUR 1.05 billion, from a year ago.

EBITDA pre-exceptional from the Performance Polymers segment, advanced by 10.7 percent year-on-year, to EUR 93 million.

Driven by continued strong demand for agrochemicals, revenues in the Advanced Intermediates segment rose in the third quarter of 2014 by, 5.2 percent to EUR 424 million.

EBITDA pre-exceptional of the segment moved ahead by 4.2 percent year-on-year, to EUR 74 million.

Sales in the Performance Chemicals segment grew 2.7 percent to EUR 561 million, while EBITDA pre-exceptional hiked by 5.6 percent to EUR 76 million, mainly from higher prices and volumes.

For the full year of 2014, Lanxess now expects EBITDA pre-exceptional to be in the range of EUR 780 million to EUR 820 million.

“Initial savings of EUR 20 million generated from the realignment program will mitigate some burdens expected in the fourth quarter,” Lanxess stated.

Lanxess said it is making rapid progress with its three-phase realignment program and the first phase, is expected to bring in total annual savings of EUR 150 million, by end of 2016.

The speciality chemicals producer expects savings of about EUR 20 million in the current year, from the realignment program. (AR)

Fibre2fashion News Desk - India

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