LANXESS expects best results in company history in 2017

In what was another major step forward in its realignment program, LANXESS closed the acquisition of U.S. chemical company Chemtura around three weeks ago. With the largest acquisition in its history, the Cologne-based company is significantly expanding its additives portfolio in particular and will become one of the world’s major actors in this growing market.

Very strong performance in the segments

Sales of the Advanced Intermediates segment in the first quarter of 2017 were EUR 518 million, 12 percent above the prior-year figure of EUR 463 million.Despite being held back by higher energy costs and a delay in passing on increased raw material prices, EBITDA pre exceptionals advanced by 2 percent to EUR 91 million, compared with EUR 89 million a year earlier. In particular, higher demand and the expansion of volumes had a positive impact on earnings.The EBITDA margin pre exceptionals was 17.6 percent, against 19.2 percent in the prior-year quarter.

Sales in the Performance Chemicals segment rose by 14 percent in the first quarter of 2017, to EUR 607 million, against EUR 533 million a year earlier. EBITDA pre exceptionals advanced by 5 percent to EUR 103 million, compared with the prior-year level of EUR 98 million. Growth was driven by strong demand for additives, biocides and leather chemicals, as well as by the contribution from the Clean and Disinfect business acquired from Chemours, while higher energy costs and negative currency effects on the costs held back earnings. The EBITDA margin pre exceptionals was 17.0 percent, against 18.4 percent in the prior-year quarter.

In the High-Performance Materials segment, sales increased by 15 percent to EUR 315 million, up from EUR 273 million a year earlier. EBITDA pre exceptionals increased by 26 percent to EUR 48 million, compared with EUR 38 million a year earlier. Growth was once again driven by expanded volumes in all product groups and regions, very high capacity utilization and a focus on higher-margin products. As a result, the EBITDA margin pre exceptionals was 15.2 percent, compared with 13.9 percent in the prior-year quarter.

Sales in the ARLANXEO segment climbed by 48 percent to EUR 948 million, compared with EUR 640 million a year earlier. EBITDA pre exceptionals increased by 27 percent to EUR 144 million, up from EUR 113 million in the first quarter of 2016. This development was driven by strong demand in Asia, efficient use of the global production network, and positive currency effects. The EBITDA margin pre exceptionals was 15.2 percent, against 17.7 percent in the prior-year quarter.

Q1 2017 financial data

(Figures in EUR million)