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

Courtesy: Pyrates Smart Fabrics

Textiles | On 16th Jul 2018

Spain's Pyrates Smart Fabrics targets Asia, S America

Spain-based Pyrates Smart Fabrics, whose major markets are northern...

Bangladesh to modernise 3 jute factories to boost sector

Textiles | On 16th Jul 2018

Bangladesh to modernise 3 jute factories to boost sector

The executive committee of Bangladesh’s National Economic Council...

Courtesy: Asda

Apparel/Garments | On 16th Jul 2018

J Sainsbury agrees to £3.5 bn financing for Asda merger

J Sainsbury plc has agreed for a financing package of £3.5 billion in ...

Interviews View All

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Himanshu Jariwala

J Korin started as a partnership firm with four powerlooms in the textiles ...

Urmil Arya

Sushila International, a well established textile organisation established ...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Ashok Desai
Bombay Textile Research Association

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

Aditi Somani
Aditi Somani

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

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

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

Leave your Comments


July 2018

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

news category


Related Categories:

Advanced Search