German leather chemical producer LANXESS Deutschland GmbH presented the third quarter results for 2005.
LANXESS chemical business in the third quarter of 2005 benefited from the implementation of previously announced restructuring measures, supported by strong growth in the chemical industry as a whole.
The operating result before depreciation and amortization (EBITDA) pre exceptionals advanced once again, increasing by 41 percent from the same period of the previous year to EUR 148 million (2004: EUR 105 million).
Sales increased slightly, up by 0.7 percent to EUR 1,776 million (2004: EUR 1,764 million). Net financial debt shrank to EUR 811 million, from EUR 1,250 million on June 30, 2005, and by 28.5 percent compared to December 31, 2004. The balance sheet structure thus improved considerably.
LANXESS Management Board Chairman Axel C. Heitmann explained that the measures they have initiated to improve our performance are bearing fruit more quickly than expected. In light of this, we now expect that EBITDA pre exceptionals will increase to between EUR 560 million and EUR 580 million for the full year 2005.
Sales in the Performance Chemicals segment, which is less affected by seasonal factors than any other part of the LANXESS Group, remained virtually unchanged from a year earlier at EUR 489 million.
Prices were up by more than 11 percent across the segment as a whole, with the Rubber Chemicals and Functional Chemicals business units, in particular, succeeding in passing on price rises to the market. This increase was offset by a 12.6 percent decrease from lower volumes.
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