LANXESS quadruples dividend

02 Jun '08

3 min read

LANXESS improved net income by 13.2 percent to EUR 103 million and raised the EBITDA margin pre exceptionals considerably to 14.3 percent. “That sets us apart from our competitors in a positive sense, as the further increase in our EBITDA margin shows that we are continuing to catch up with the competition despite the increasingly difficult environment,” Heitmann commented.

Positive outlook for fiscal 2008 confirmed:
Despite the slowdown in the economy, the company expects to post operational sales growth in 2008. “We anticipate that EBITDA pre exceptionals will exceed EUR 700 million in 2008,” Heitmann said, confirming the guidance for the full year.

The company predicts that world economic growth will continue to weaken. The global chemical economy should remain stable, however, buoyed by strong demand in Asia-Pacific, Latin America, and Central and Eastern Europe.

By contrast, prospects are increasingly gloomy for the chemical industry in North America. However, most of the customer sectors of importance to LANXESS – such as the tire industry – are expected to be much less affected by this trend.

“LANXESS is correctly positioned and thus will already achieve in 2008 the ambitious goals that we had originally set for 2009,” Heitmann reported.

For the full year 2008, he said the company aims to generate an EBITDA margin pre exceptionals in line with the industry average and achieve a margin of at least 5 percent in all business units. A further goal is to maintain the company's investment-grade rating.

LANXESS AG

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