Lanxess – continued growth in Q2

Specialty chemicals Group Lanxess reports continued growth in the second quarter of 2012, with EBITDA pre-exceptionals rising 6.8 per cent year-on-year to 362 million euros. Sales increased 8.1 per cent to 2.42 billion euros. Commenting on the results, company CEO Axel C. Heitmann said “we believe these results confirm our view of the seasonal development, and we are therefore adhering to our target of raising EBITDA pre exceptionals by five to ten per cent for the full year. Our focus on megatrends and growth regions, combined with our technological expertise, provide stability in an increasingly challenging environment.”

Europe (excluding Germany), Middle East, Africa) remained the company’s strongest region, contributing 27 per cent to group sales. Sales in this region receded by more than two per cent compared with the prior-year period, however, to 650 million euros, with business declining particularly in Italy and Spain. Russia, by contrast, saw encouraging growth. Asia-Pacific region sales rose nearly 24 per cent to 608 million euros, or a quarter of the group total, while North American sales increased more than 19 per cent to 439 million euros. Latin America sales rose eight per cent year-on-year to 331 million euros. Sales in the company’s German home market fell by less than four per cent year-on-year to 396 million euros.

The company continues to anticipate a “typically seasonal” business pattern for the current business year. Consequently, Lanxess expects EBITDA contributions of the first half of the year in relation to the second half in a ratio of 60:40. In view of increasing economic challenges, the company says it does not expect to see any further momentum in the second half of the year.  “We therefore expect the operating result in the second half of 2012 to be approximately at the prior-year level,” said Heitmann.