LANXESS Has Followed Up Its Successful Fiscal Year 2017

LANXESS posted the best quarterly result in its history and has raised its earnings guidance for 2018.

Source; Google

LANXESS Has Followed Up Its Successful Fiscal Year 2017

The Group has raised its guidance for the fiscal year 2018 and now expects EBITDA pre exceptionals to increase by between 5 percent and 10 percent for the “New LANXESS” segments (Advanced Intermediates, Specialty Additives, Performance Chemicals and Engineering Materials). In the previous year, comparable EBITDA pre exceptionals stood at around EUR 925 million.

Sound business development in the segments

Sales of the Advanced Intermediates segment came to EUR 563 million in the first quarter of 2018, 8.7 percent above the prior-year figure of EUR 518 million. EBITDA pre exceptionals increased by 12.1 percent to EUR 102 million compared with EUR 91 million a year earlier, largely as a result of adjusted selling prices. The EBITDA margin pre exceptionals amounted to 18.1 percent, against 17.6 percent in the previous year.

In the Specialty Additives segment, sales totaled EUR 496 million, more than double the EUR 239 million generated in the same quarter of the previous year. EBITDA pre exceptionals amounted to EUR 81 million, up 84.1 percent on the prior-year level of EUR 44 million. This strong earnings performance chiefly results from the integration of the purchased Chemtura businesses. The EBITDA margin pre exceptionals was 16.3 percent, below the 18.4 percent recorded in the previous year.

In the Performance Chemicals segment, sales fell by 8.7 percent to EUR 336 million in the first quarter of 2018, against EUR 368 million in the previous year. EBITDA pre exceptionals amounted to EUR 52 million, down 11.9 percent on the prior-year level of EUR 59 million. In particular, negative currency effects and the divestment of the chlorine dioxide business reduced sales and earnings. The EBITDA margin pre exceptionals amounted to 15.5 percent, against 16.0 percent in the same period of the previous year.

Sales in the Engineering Materials segment rose by a considerable 24.8 percent to EUR 393 million, compared with EUR 315 million in the same quarter of the previous year. EBITDA pre exceptionals increased even stronger – by more than 50 percent to EUR 73 million, compared with EUR 48 million. The EBITDA margin pre exceptionals of 18.6 percent was well above the figure of 15.2 percent attained in the same quarter of the previous year.

At EUR 757 million, sales in the ARLANXEO segment were 20.1 percent down on the very strong figure of EUR 948 million for the same quarter of the previous year. EBITDA pre exceptionals fell by 22.9 percent to EUR 111 million compared with EUR 144 million in the previous year, largely as a result of adverse currency effects. The EBITDA margin pre exceptionals amounted to 14.7 percent, against 15.2 percent a year earlier.

Q1 2018 key financial data

(Figures in EUR million)

 

 

Q1 2017

 

 

Q1 2018

 

 

Change in percent

 

 

Sales

 

 

2,401

 

 

2,565

 

 

6.8

 

 

EBITDA pre exceptionals

 

 

328

 

 

375

 

 

14.3

 

 

EBITDA margin pre exceptionals (in percent)

 

 

13.7

 

 

14.6

 

 

 

 

 

Net income

 

 

78

 

 

96

 

 

23.1

 

 

Earnings per share in EUR

 

 

0.85

 

 

1.05

 

23.1

 

 

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