Home / Knowledge / News / Textiles / Strong Q2 prompts Lanxess to raise full year guidance
Strong Q2 prompts Lanxess to raise full year guidance
07
Aug '15
Specialty chemicals company Lanxess raised its guidance for the full year 2015, following a strong second quarter in the current year.

“Lanxess now expects to achieve EBITDA pre exceptionals between €840 million and €880 million as against, between €820 million and €860 million it had projected earlier,” a Lanxess press release said.

“In the second quarter of this year, we posted a very good operating result to which all segments of our company contributed,” chairman Matthias Zachert said.

“On the basis of these strong figures and the rapid implementation of our realignment program, we assume that our annual result will be higher than previously anticipated,” he informed.

Lanxess increased its guidance on the back of EBITDA pre exceptionals expanding by 13 percent in the second quarter ended June 30, 2015 from €239 million to €270 million in the prior year second quarter.

“This development was driven by increased volumes, savings generated by the realignment, and positive currency effects due to the strong US dollar.” it explained.

EBITDA pre exceptionals margin in the reporting quarter too grew to 12.8 per cent as against 11.8 percent in the second quarter of 2014.

In the quarter under review, sales improved by 4.3 per cent to €2.1 billion, compared with €2.0 billion in the previous year's corresponding quarter.

“Higher volumes and positive currency effects more than offset the raw material induced lower selling prices,” the German company said.

Driven by operational development and proceeds from the sale of noncurrent assets, net income zoomed 58.2 per cent to €87 million from €55 million a year earlier.

At around €1.4 billion, net financial liabilities were almost at the same level as at the end of 2014.

Following the completion of major projects in Asia, capital expenditures declined by more than half in the second quarter against the prior-year quarter from €154 million to €73 million.

“The financial consolidation measures we have implemented as part of our realignment process are taking effect,” said Lanxess CFO Michael Pontzen.

“This development was recently rewarded by the rating agencies Moody's and Standard & Poor's when both confirmed our investment-grade rating with stable outlook,” he added.

The three-phase realignment program initiated by the company last year continues to progress on schedule it informed, and it has already successfully implemented the first phase.

Measures of the second phase, aimed at improving operational competitiveness, have also been initiated.

They include the reorganisation of the production networks for its rubber types EPDM like ethylene propylene diene monomer and Nd-PBR's like neodymium-based performance butadiene rubber.

The third phase of the program is focused on improving the competitiveness of the business portfolio, especially through potential alliances in the rubber business. (AR)

Fibre2Fashion News Desk – India


Must ReadView All

Two slabs of GST will affect Bengaluru garment units: SIGA

Apparel/Garments | On 23rd Jan 2018

Two slabs of GST will affect Bengaluru garment units: SIGA

The South India Garment Association (SIGA) has voiced its concern...

US FTC updates textile rules to drop obsolete requirement

Textiles | On 23rd Jan 2018

US FTC updates textile rules to drop obsolete requirement

The US Federal Trade Commission has eliminated an obsolete provision...

Indian textile industry at inflection point: Report

Textiles | On 23rd Jan 2018

Indian textile industry at inflection point: Report

The textile and apparel sector of India is at an inflection point...

Interviews View All

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Cindy McNaull
Cordura

We have broad range of options in durable fabrics

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Jay Ramrakhiani
Occasions Elegance Wear

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

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

January 2018

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

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

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

Yes No

Active Poll

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

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

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

Yes No

Active Poll

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

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

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

Active Poll

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

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


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