Home / Knowledge / News / Textiles / LANXESS achieves best quarterly earnings in its history
LANXESS achieves best quarterly earnings in its history
14
Aug '08
Specialty chemicals company LANXESS AG considerably improved both its operating result and sales in the second quarter of 2008. The group's central steering parameter, EBITDA pre exceptionals, climbed by 5.7 percent in the period April through June, to EUR 223 million (Q2 2007: EUR 211 million).The EBITDA margin pre exceptionals edged ahead by 0.4 percentage points to 12.6 percent.

LANXESS generated net income of EUR 53 million in the second quarter, against a net loss in the prior-year period related to the divestiture of the Lustran Polymers business unit. The fact that raw material price increases were passed on to the market in full had a particularly positive effect.

Sales of the LANXESS Group rose by 2.2 percent, from EUR 1,727 million in the prior-year period to EUR 1,765 million in the second quarter of 2008. Adjusted for portfolio changes and negative currency effects operational sales climbed by 14 percent.

“LANXESS generated very good earnings in the second quarter of 2008 and resolutely maintained its course of profitable expansion. The Group is optimally positioned to stand up well in an increasingly difficult market environment,” said Axel C. Heitmann, Chairman of the Board of Management of LANXESS AG. Heitmann attributed this to his company's focus on high-performance, innovative products and to the divestment of highly cyclical businesses as part of its systematic portfolio management.

Capital expenditures rose by 3.1 percent to EUR 66 million (Q2 2007: EUR 64 million).

Further EBITDA growth in the first half of 2008:
In the first six months of 2008, EBITDA pre exceptionals of LANXESS improved by 3 percent to EUR 443 million (H1 2007: EUR 430 million). The EBITDA margin grew by 0.9 percentage points to 13.4 percent. Net income climbed by EUR 124 million compared to the first half of 2007, to EUR 156 million.

The prior-year figure of EUR 23 million was largely shaped by exceptional charges relating to the sale of the Lustran Polymers business unit. Sales came in at EUR 3.3 billion, just below the previous year's figure of EUR 3.4 billion. On an adjusted basis, however, half-year sales rose by a substantial 11.1 percent.

Positive second-quarter performance in all regions:
The Group's positive business performance was also reflected in regional trends. Adjusted for portfolio changes and currency effects, LANXESS increased sales in all regions.

Sales gained strongly in the Asia-Pacific region, with LANXESS's business benefiting primarily from the activities of the Performance Polymers segment. Reported sales in this region came in at EUR 323 million (Q2 2007: EUR 310 million), up 4.2 percent. On an adjusted basis, sales rose by an even more substantial 43 percent. The region's share of total Group sales increased slightly to EUR 18.3 percent (Q2 2007: 18.0 percent). LANXESS achieved growth rates well into double digits in China, India and Japan.


Must ReadView All

GMAC urges Cambodia to push fabric-forward rule in RCEP

Apparel/Garments | On 17th Oct 2017

GMAC urges Cambodia to push fabric-forward rule in RCEP

Representatives from the Garment Manufacturers Association of...

Alibaba to invest $15 billion in DAMO Academy for research

Textiles | On 17th Oct 2017

Alibaba to invest $15 billion in DAMO Academy for research

Alibaba will invest $15 billion over the next several years in its...

Pressure on  Indian textiles exporters to ease by Q3: ICRA

Textiles | On 17th Oct 2017

Pressure on Indian textiles exporters to ease by Q3: ICRA

Pressures on the profit and debt levels of textiles exporters is...

Interviews View All

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Headhonchos
Indian textile value chain

'One nation, one tax' is a great concept

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

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...

Mark Paterson
Technical Absorbents Ltd

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

Aditi Somani
Aditi Somani

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

Bani Batra

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

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

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

October 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

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.3%
No
13.6%
Skip
9.1%

Total Votes: 66

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
60.6%
No
28.8%
Skip
10.6%

Total Votes: 66

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
84.8%
No
10.6%
Skip
4.5%

Total Votes: 66

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
74.2%
No
12.1%
Skip
13.6%

Total Votes: 66


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