- EBITDA pre exceptionals in 2013: between EUR 710 million and EUR 760 million - Q3 with volume growth in all segments; continued pressure on prices - Q3 sales decline by 5 percent year-on-year to EUR 2.1 billion - Q3 EBITDA 26 percent lower at EUR 187 million - Q3 net income drops by 88 percent to EUR 11 million - Sales expand in Asia-Pacific - Agrochemicals business remains stable - Sales expand in Asia-Pacific - Agrochemicals business remains stable
In the third quarter of 2013, the company posted a 9 percent volume increase year-on-year, with all segments contributing. However, this increase did not entirely offset the 11 percent overall price decline. Prices fell particularly in the rubber businesses belonging to the segment Performance Polymers. Negative currency effects, mainly related to the weakness of the U.S. Dollar, also had an impact. Group sales fell by 5 percent overall compared with the prior-year quarter to EUR 2.1 billion.
Apart from the gradual increase in volumes in all segments, the ongoing strong demand for agrochemicals and positive sales development in the Asia-Pacific region also had a stabilizing effect on quarterly results.
"Some of our customers have started restocking their inventories. This is highlighted by the year-on-year and quarter-on-quarter volume increases," said Axel C. Heitmann, Chairman of the Board of Management of LANXESS AG. "But, in our view, it is still too early to speak of a general recovery of the business."
EBITDA pre exceptionals receded by 26 percent year-on-year to EUR 187 million. This was largely due to lower selling prices and inventory reduction. In addition, there was a burden of around EUR 10 million in the form of inventory devaluations. The EBITDA margin pre exceptionals declined to 9.1 percent from 11.8 percent. Net income fell by 88 percent to EUR 11 million due to higher depreciation and amortization as well as exceptional charges of roughly EUR 20 million for the efficiency program "Advance".
Operating cash flow improved to EUR 378 million in the third quarter of 2013 from EUR 344 million a year earlier due to a reduction in working capital. Net financial liabilities decreased to around EUR 1.8 billion from the end of the second quarter due to strict working capital management. "We aim to further reduce net financial liabilities by year end," said LANXESS Chief Financial Officer Bernhard Duettmann.
Click here to read full results
| On 25th Oct 2021
China is expected to attract more than $156.51 billion of foreign...
The digitalisation of logistics services, accelerated by the...
The Hong Kong Special Administrative Region will strengthen its...
Consistency is the first rule of social media
The pandemic has reinstated need for organised retail spaces in Tier II...
Ensured payment of fee was least concern for students
Dhirubhai & Arvind Shah
It supplies synthetic fabrics to top international brands like M&S,...
Rishav Bajoria & Subham Sengupta
Launched in October 2020, the Gumti app could not have come at a more...
Yawer Ali Shah
Synthetic colours and dyes were all the rage till the very first ban on...
Jaanuu, a vertically integrated e-commerce company, has reimagined the...
Hologenix is a material sciences company dedicated to developing products...
Wearable Technology Lab, University of Minnesota
A new study led by researchers at the University of Minnesota's Design of...
Label Archana Jaju
<b>Archana Jaju</b>’s Hyderabad-based eponymous label works with artisans...
Samatvam, a womenswear brand that blends age-old craftsmanship with modern ...
Label Manish Malhotra
A multitalented designer and founder of an eponymous label, Manish...
Letter to Editor
Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.
Subscribe today and get the latest information on Textiles, Fashion, Apparel.